Bitcoin falls to near $92,000.

Việt Nam•20/12/2024

Nearly $680 million in outflows from Bitcoin ETFs caused the cryptocurrency's price to plummet 10% to near $92,000.

Bitcoin (BTC) once again lost the $100,000 mark and has been fluctuating around the $95,000-$97,000 range throughout this afternoon.

Around 7:10 PM (7:10 AM local time), BTC unexpectedly plummeted to $92,175 per unit, losing 10% in just 24 hours. Compared to its record high on December 17th, the world's largest cryptocurrency has lost nearly $16,100. Its market capitalization also decreased at a similar rate, pushing BTC down to eighth place in the global ranking of the largest assets.

Subsequently, the market price improved to the $94,000 region. However, this is still a significant gap compared to... The price peaked at $106,500. 3 days ago.

The Bitcoin crash occurred after the market witnessed a strong wave of profit-taking by "whale" investors.

According to data from UK-based investment firm Farside Investors, spot US Bitcoin ETFs (a type of exchange-traded fund that invests primarily in Bitcoin) saw the largest net outflow ever recorded, at $679 million. CoinTelegraph describes this sell-off as a "cleansing" event.

However, experts believe the move helps eliminate excessive speculation in the market. Nevertheless, long-time market participants still fear that worse things could happen.

The Bitcoin logo is placed in front of a chart illustrating a price decline. Photo: CNBC

Approximately $900 million worth of digital assets were liquidated within 24 hours, according to data from CoinGlass. Changes in US macroeconomic policy, with the Federal Reserve signaling a slowdown in interest rate cuts next year, have cut short the broad recovery of risky assets.

Furthermore, Fed Chairman Jerome Powell stated that the agency "is not permitted to own Bitcoin" under the Federal Reserve Act. He emphasized that they also have no intention of amending the law to participate in building a cryptocurrency reserve as envisioned by President-elect Donald Trump.

"While it's easy to blame the sell-off on the Fed, we believe the root cause of the collapse was an overbought market," the analysis team at cryptocurrency platform QCP Capital emphasized.

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