Why Bitcoin and Altcoin Prices Are Down Today

Bittime - On Monday (December 9, 2024), the crypto market experienced a significant price drop, with many altcoins experiencing drops of up to 20%. 

Although Bitcoin (BTC) is still performing better than most other coins, the price of Bitcoin remains down around 5% in the last 24 hours, hovering around $95,000. Meanwhile, Ether (ETH) fell by 10%, reaching $3,590.

What Happened to Bitcoin Price?

As an illustration, at the beginning of Monday, Bitcoin was trading at more than $100,000 (around IDR 1.5 billion), but with this decline, the price of Bitcoin is now around $95,000, which is equivalent to around IDR 1.4 billion. 

This 5% decline is quite significant, especially for investors who expect Bitcoin to continue to strengthen. Ether (ETH) also experienced a deeper decline, with the price now at around $3,590 or around IDR 54 million.

Also read: Altcoin Season Starts When Bitcoin Prices Drop, Here's Why!

Main Causes of Price Drops

This price decline began at the weekend and worsened market conditions in the trading session Monday evening US time. 

Bitcoin, which was trading above $100,000 at the start of the day, fell sharply to touch the $96,000 area before finally settling just above $95,000. 

The decline also led to the liquidation of more than $750 million worth of leveraged derivatives positions across digital assets, the majority of which were bullish positions.

Data from CoinGlass shows that this liquidation is almost on par with the crisis that occurred on August 5 and slightly below the wild price spike last Thursday, when Bitcoin fell drastically from more than $100,000 to $90,000. This indicates that instability and pressure in the crypto market is increasing.

Significant Altcoin Drop

Several altcoins also experienced sharp declines. Cardano (ADA), Avalanche (AVAX), and XRP (XRP) each recorded drops of around 20%. 

The CoinDesk 20 index, which includes the 20 largest crypto assets, also saw a decline of more than 8% in the same period. This condition illustrates how widespread the impact of this price decline is across the crypto market.

Also read: When is Altseason: 3 Reasons Why Altcoin Season Has Already Started

Factors Causing Decline

According to a report from analytics firm 10x Research, several factors influenced this decline. One of them is the decreasing trading volume on crypto exchanges as well as profit taking by long-term holders. 

This decline indicates that the market is entering a consolidation phase, which could be temporary before the bull market resumes its positive momentum.

Markus Thielen, founder of 10x Research, stated that this phase will likely only be a brief consolidation before the bull market regains momentum. 

However, Thielen also reminded traders to pay more attention to which assets are performing well and which are not, because not all assets will continue to rise over time.

Also read: From Bali to the World: ICP Chain Fusion Hacker House Creates New History

Crypto Market Predictions

Despite the current downturn in the crypto market, analysts remain optimistic that the market will recover. 

Many traders in the options market are now starting to position themselves for more sideways price movement into the end of the year, with some taking profits from their previous bullish positions and possibly moving their positions into early next year.

Overall, even though the crypto market experienced a massive decline, many believe that this is a temporary consolidation phase and the market still has the potential to rally again. 

However, traders are reminded to be careful and focus on positions that have strong prospects, and avoid weaker segments.

The crypto market is always full of volatility, and this is a reminder that traders need to always monitor market movements closely to anticipate rapid changes.

Bitcoin and Altcoin Price Drop FAQ

What caused the drop in Bitcoin and altcoin prices?

The decline was caused by lower trading volumes, profit taking and liquidation of leveraged derivatives positions.
 

Does this decline indicate the end of the bullish trend?

No, this is likely just a consolidation phase before the market resumes its bullish trend.

How should traders deal with this price drop?

Traders should focus on assets with strong prospects and avoid weaker market segments.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with CoFTRA, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Cek rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.

Reference

coindesk, Crypto Crumbles in Broad Selloff Led 20% Declines Across Numerous Altcoins, accessed December 10, 2024.

Yahoo Finance, Crypto Crumbles in Broad Selloff Led 20% Declines Across Numerous Altcoins, accessed December 10, 2024.

Author: MF