- Bitcoin’s price plunged 7% in the past 24 hours to around $42,200, erasing the gains made over the past week. Over $550 million in crypto positions were liquidated.
- The flash crash comes as the crypto market awaits the SEC’s decision on whether to approve Bitcoin ETF applications, with analysts split on the outcome.
- The plunge demonstrates the continued volatility of the cryptocurrency market, with Bitcoin’s bull run brought to a halt as its price tumbled in minutes.
The price of Bitcoin plunged by over 7% in the past 24 hours, erasing the past week’s gains in a matter of minutes. Per data from CoinGecko, Bitcoin’s price has dropped by 7.3% in the past 24 hours, with the cryptocurrency currently trading at around $42,200. Bitcoin’s price tumbled as low as $41,804 during the crash, erasing gains seen in the past week.
Over $550 million in crypto long positions were liquidated in the past 24 hours per data from CoinGlass, including $104 million in Bitcoin longs in the past hour alone. Other cryptocurrencies in the top 10 plunged alongside Bitcoin, with Ethereum slumping by 8.8% to just under $2,200 while Solana crashed by over 15% in the past 24 hours to under $100. XRP crashed by over 10% while Cardano fell by 14% and Avalanche by 15%.
Price Drop Comes Amid SEC Bitcoin ETF Decision
The price slump comes as the crypto market braces for the SEC’s decision on whether or not to approve multiple spot Bitcoin ETF applications in the coming days, with some analysts speculating that it will be a sell-the-news event.
In a research note, Matrixport analyst Markus Thielen yesterday argued that the SEC would likely reject all applications for a spot Bitcoin ETF in January, in contrast to the optimistic stance expressed by Bloomberg Intelligence and JP Morgan analysts.
Conclusion
Bitcoin’s bull run has been brought to a screeching halt, with the cryptocurrency plunging to under $42,000 in a matter of minutes on Wednesday morning. The flash crash erased the gains made over the past week, and came amid speculation over an imminent decision by the SEC on Bitcoin ETF applications. The price plunge demonstrates the continued volatility of the cryptocurrency market.
