The cryptocurrency market experienced a significant downturn, led by major assets such as Bitcoin and Ethereum. This decline, initially sparked by a sharp correction over the weekend, saw Bitcoin’s price drop by 6.5%, erasing nearly a week of gains within 20 minutes on December 10. A rush of liquidations in the derivative market, totaling over $350.3 million in long positions, further exacerbated the situation. Additionally, daily trading volumes in the crypto market have been on a decline since reaching a peak of $37.6 billion on December 4, further contributing to the market’s instability.
Compounding these market dynamics is the increasing regulatory pressure in the United States. Recent actions by the Department of Justice, including a settlement with Binance, have heightened concerns over cryptocurrency regulations. This, coupled with investor sentiment and profit-taking after a multi-month rally, has influenced the market’s trajectory, leading to the current downturn.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
