Bitcoin (BTC) has given up the mild gains it accrued at the start of the year as rumors of a potential rejection of its spot ETF filled the ecosystem.
Bitcoin’s price slumped by 7% to a 24-hour low of $40,813.53 before bouncing back to its current level of $42,493.66. Though these erratic price moves are not uncommon in the crypto ecosystem, there are other highlighted factors influencing investors’ sentiment at the moment.
The Bitcoin drawdown has caused a 7% drop in Bitcoin’s market capitalization, which is now worth $826,945,714,859. However, trading volume is in the green, jumping by 23.1% in 24 hours to $42,743,080,514.
Justifying the Bitcoin (BTC) Price Slump
Prior to this current liquidation, Bitcoin recorded four consecutive bullish monthly closes that brought its total gains for 2023 to 150%.
Judging by this rapid price surge, experts in the industry supported the thesis that an ultimate correction was necessary, with some even setting a retracement price as low as $32,000 for the coin.
To complement this sentiment, Bitcoin miners also decided to go on a selling spree. As revealed by market analyst Ali Martinez, Bitcoin miners have sold approximately 4,000 Bitcoin worth more than $176 million over the past ten days.
The impact of these selloffs and the bearish report of the potential spot Bitcoin ETF application rejections has sparked more than $655 million in liquidations, according to data from CoinGlass.
The majority of Long traders got liquidated, undermining their buildup for an expected bullish rally that might have trailed a potential approval of the ETF product later this month.
Many top voices in the industry are doing damage control now, as experts consider the slumped prices a good discount to buy BTC before the price ultimately shoots up in the near future upon approval of Bitcoin ETF.
Altcoin Season Stumped
With most altcoins still maintaining a correlation with Bitcoin, the fall in the price of the bigger coin has triggered a massive slump to derail the growth of some of these coins.
Ethereum is down by 7.52% to $2,203.03, Cardano has dropped by 11.28% to $0.5465, with Solana (SOL) also joining the bandwagon, slipping 13.70% to fall below the $100 support to $96.60.
With the current slump more encompassing unless any correction is seen in months, some altcoins like Maker (MKR) and Internet Computer (ICP) have jumped by 6.64% and 5.84% to $1,762.03 and $13.96 respectively.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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