The Crypto Market Falls Sharply in Just Hours. What happened?

The Crypto Market Falls Sharply in Just Hours. What happened?
Table of Contents

During Asian trading hours, the crypto market experienced a significant downturn. The total market capitalization of all cryptocurrencies fell by 5%, dropping to $1.57 trillion. Bitcoin, the largest cryptocurrency by market cap, decreased its price by nearly 7%. Other leading cryptocurrencies, including Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Shiba Inu (SHIB), also experienced substantial sell-offs within a short period. 

Concurrently, the Crypto Fear & Greed Index, a measure of market sentiment, declined slightly from 82 to 80, indicating a state of extreme greed. On December 11, at 2:15 am UTC, Bitcoin’s value momentarily dipped under the $41,000 mark. This was a result of an abrupt 6.5% decrease from $43,357 to a low of $40,659 within a 20-minute window. As per the data from CoinMarketCap at the time this information was published, Bitcoin’s trading price had slightly recovered from its recent low, standing at $42,416.

Altcoins Suffered Heavier Losses During the Recent Crypto Market Drop

As is often the case, altcoins are experiencing more significant losses. The total market capitalization has decreased by approximately $80 billion, or 4%, in the last few hours. Ether experienced a sharp drop, decreasing over 8.9% within the same duration. Since then, the price of ETH has regained stability and is currently being traded at $2,246, reflecting a 3.80% decline for the day. 

The Crypto Market Falls Sharply in Just Hours. What happened?

XRP has seen a 7% decrease today, dropping to $0.621, while Solana (SOL) has fallen 5.7% to $68.90. Additionally, Cardano (ADA), Polkadot (DOT), Chainlink (LINK), Polygon (MATIC), Shiba Inu (SHIB), and Litecoin have all seen declines of more than 6%. Despite the overall downward trend, a few altcoins such as Avalanche (AVAX), Immutable (IMX), and Injective (INJ) have managed to record gains today.

It is worth noting, that most Altcoins which suffered losses during this time, have since been in a recovery mood. The recent correction in the cryptocurrency market was anticipated by traders as the market had been on a continuous upward trend. Renowned Bitcoin analyst, Willy Woo, pointed out that the price of Bitcoin had doubled in a mere two months without any pullbacks, making a correction somewhat expected. 

In addition, data from CoinGlass reveals a substantial liquidation of over $400 million on December 11. The market witnessed the liquidation of $354 million worth of long positions in just one hour. Over the past 24 hours, more than 119,000 traders were liquidated, with the largest single liquidation order on OKX’s BTC-USDT-SWAP valued at $8.23 million. The cryptocurrency market is currently in the ‘red’ due to the closing of positions and the ensuing selloff.


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