Why did Bitcoin suddenly plunge? Wall Street selling pressure wiped out over $10 billion in crypto positions
Nasdaq crashed, Bitcoin and Ether fell more than 6% and 7%, respectively, triggering the liquidation of over $10 billion in crypto positions
Wall Street stocks—especially the Nasdaq—suddenly started tumbling, and Bitcoin and Ether, two major cryptocurrencies, followed in a free fall. The Block reported that the drop led to the forced liquidation of crypto positions worth more than $10.3 billion. In other words, someone lost over $10 billion in an instant. The selling pressure was intense. After all, crypto markets are highly correlated with U.S. stocks, so when U.S. stocks take a beating, crypto can easily get dragged down with them.
Impact on the market
- Short term: Bitcoin fell to $75,700, with sentiment hitting its lowest point; Ether also dropped below the $2,200 mark. Bearish sentiment is now strong, and prices may continue to fall in the short term to test support at $70,000 and $2,000.
- Medium term: If U.S. stocks keep moving in this direction, it could shake bullish investors’ confidence and trigger another reshuffling of the industry. Regulators haven’t made any moves, but market confidence has already taken a hit.
My take
This drop was so sudden that it wiped out the gains made after the election. Don’t come down too hard on me if I’m wrong—I’m only trying this with a small position myself. In the short term, prices will likely test the area around $73,000, but it’s still unclear whether they’ll fall further from there. The outflows are just too large. South Korea is one of the world’s most active crypto trading markets, and withdrawals by local investors could accelerate the decline.
$BTC $ETH #BTC #ETH
⚠️ This is not investment advice
#USNovemberMichiganExpectationsIndexPrelimAt50.9
$BNB
Nasdaq crashed, Bitcoin and Ether fell more than 6% and 7%, respectively, triggering the liquidation of over $10 billion in crypto positions
Wall Street stocks—especially the Nasdaq—suddenly started tumbling, and Bitcoin and Ether, two major cryptocurrencies, followed in a free fall. The Block reported that the drop led to the forced liquidation of crypto positions worth more than $10.3 billion. In other words, someone lost over $10 billion in an instant. The selling pressure was intense. After all, crypto markets are highly correlated with U.S. stocks, so when U.S. stocks take a beating, crypto can easily get dragged down with them.
Impact on the market
- Short term: Bitcoin fell to $75,700, with sentiment hitting its lowest point; Ether also dropped below the $2,200 mark. Bearish sentiment is now strong, and prices may continue to fall in the short term to test support at $70,000 and $2,000.
- Medium term: If U.S. stocks keep moving in this direction, it could shake bullish investors’ confidence and trigger another reshuffling of the industry. Regulators haven’t made any moves, but market confidence has already taken a hit.
My take
This drop was so sudden that it wiped out the gains made after the election. Don’t come down too hard on me if I’m wrong—I’m only trying this with a small position myself. In the short term, prices will likely test the area around $73,000, but it’s still unclear whether they’ll fall further from there. The outflows are just too large. South Korea is one of the world’s most active crypto trading markets, and withdrawals by local investors could accelerate the decline.
$BTC $ETH #BTC #ETH
⚠️ This is not investment advice
#USNovemberMichiganExpectationsIndexPrelimAt50.9
$BNB
