Crypto Market Takes a Dive: Bitcoin and Ether Face Sharp Declines

The
crypto
market
experienced
a
rapid
downturn
in
the
early
evening
U.S.
hours
on
Monday
with
prices
plunging
across
the
board.
Bitcoin
(BTC),
the
bellwether
of
the
sector,
fell
about
5%
over
the
past
24
hours
to
just
above
$95,000
at
press
time.
Ether
(ETH),
the
second-largest
cryptocurrency
by
market
cap,
was
not
spared
either,
dropping
10%
to
$3,590.

The
broader
CoinDesk
20
Index,
which
tracks
the
market
performance
of
the
top
20
cryptocurrencies
by
market
capitalization,
also
suffered
a
significant
hit,
registering
a
decline
of
over
8%
over
the
same
period.
Leading
the
descent
was
Cardano
(ADA),
Avalanche
(AVAX),
and
XRP
(XRP),
each
plunging
roughly
20%.

CoinGlass
data
revealed
that
over
$750
million
worth
of
leveraged
derivatives
positions
were
liquidated
across
all
digital
assets
within
the
past
day.
The
majority
of
these
were
bullish
bets,
putting
today’s
market
downturn
nearly
on
the
same
level
as
the
August
5
crash.
It
also
trails
closely
behind
last
Thursday’s
dramatic
dip
when
BTC
plummeted
to
$90,000
from
above
$100,000.

Some
analysts
have
pointed
to
signs
of
weakening
momentum
in
the
crypto
markets.
These
include
declining
exchange
volumes
and
heavy
profit-taking
by
long-term
holders,
as
highlighted
by
analytics
firm
10x
Research
in
a
Monday
morning
note.

Despite
the
current
market
turbulence,
Markus
Thielen,
founder
of
10x
Research,
suggested
this
could
be
a
temporary
consolidation
phase
before
the
bull
market
regains
momentum.
He
advised
traders
to
keep
a
close
eye
on
which
positions
are
outperforming
and
underperforming
as
not
everything
will
continue
to
rise
during
this
rally.
His
advice
to
traders
was
to
steer
clear
of
weaker
segments
and
centre
their
strategies
on
high-conviction
positions.

Meanwhile,
a
Monday
morning
report
from
digital
asset
hedge
fund
QCP
indicated
that
options
traders
are
increasingly
gearing
up
for
sideways
price
action
until
the
year-end.
They
are
taking
profits
on
their
earlier
bullish
bets
and
potentially
rolling
positions
out
to
early
next
year.
The
report
suggested,
“Although
we’re
still
structurally
bullish,
spot
[price]
is
likely
to
range
here
for
the
remainder
of
the
holiday
season.”

This
recent
market
downturn
serves
as
a
stark
reminder
of
the
volatile
nature
of
the
crypto
market,
emphasizing
the
need
for
traders
to
stay
informed
and
adjust
their
strategies
accordingly.
Despite
the
current
bearish
mood,
many
analysts
and
traders
alike
remain
hopeful
for
a
strong
rebound
as
we
move
into
the
new
year.