#Kripto Why the Market is Falling
The crypto market crash on December 9, 2024 was caused by 4 SIGNIFICANT converging factors:
1. Excessive Leverage and Liquidations:
Over $1.7 billion worth of leveraged positions were liquidated in 24 hours, Bitcoin fell below $94,000, and Ethereum fell 8%. This created a domino effect in the market as both long and short positions were forced to close, further exacerbating the sell-off
2. Quantum Computing Fears:
Google’s announcement of its advanced “Willow” quantum chip has raised concerns about potential threats to cryptocurrency security. While not an immediate problem, some traders have speculated about vulnerabilities in cryptographic defenses, leading to uncertainty in the market
3. Government Bitcoin Sales:
The Bhutanese government has moved significant amounts of Bitcoin onto exchanges, fueling fears of increased supply and further price declines. This mirrored previous moves that had been weighing on Bitcoin prices
4. General Market Trends:
Broader market corrections tied to pre-halving cycles also played a role. Historically, Bitcoin experiences pullbacks and reaccumulation phases prior to halving events, which is consistent with the patterns seen in this downtrend.
These combined factors created a perfect storm that led to the sharp decline.