Saturday, February 24, 2024

Bitcoin Experiences 7.5% Correction in Ongoing Price Fluctuations.

Amidst a larger crypto selloff, Bitcoin produced another bout of its infamous volatility with a quick but significant decline toward $40,000.

As of 7:15 a.m. on Monday in London, the largest token had fallen as far as 7.5% to $40,521 before partially recovering its losses to trade 3.6% lower at $42,245.

Smaller coins like Cardano, XRP, Ether, and Polkadot also saw losses. A measure of the top 100 digital assets fell by about 4%, marking the worst decline since November 22.

This year, Bitcoin has surged because of the anticipation that regulators may approve the first US exchange-traded funds to invest directly in the token, thereby expanding the pool of possible cryptocurrency investors. There has been a surge in virtual currencies, including Bitcoin, due to bets that the Federal Reserve will lower interest rates in 2024.

“Market leverage had increased significantly,” stated Richard Galvin, a co-founder of Digital Asset Capital Management located in Sydney. “Rather than any fundamental news catalyst, the current decline appears to be the result of market deleveraging.”

As of 7:15 a.m. in London on December 11, over $312 million worth of cryptocurrency trading positions that were gambled on higher prices were liquidated, according to Coinglass data. This is the largest amount since at least mid-September.

Awaiting the Fed

This week’s US inflation statistics and the Fed’s final policy meeting in 2023 are expected to test investors’ bold bets on rate cuts. As a measure of caution, the dollar index increased on Monday, causing global markets and US share futures to tremble.

Profit-taking is expected, says IG Australia analyst Tony Sycamore. He also believes dip buyers will support prices between $37,500 and $40,000.

The rise in bitcoin has helped the price of digital assets recover more broadly after falling by more than 150% in 2022. The token is still well below its record from the epidemic era, which was around $69,000 and set more than two years ago.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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