Bitcoin Plunges 6% in 24 Hours, Slumping to $42,685: What Caused the Fall?
Not too long after touching a high of $45,000 for the first time since April 2022, bitcoin witnessed a sharp fall to trade at $42,685 on Wednesday, registering a 6 percent fall in 24 hours, CoinMarketCap data revealed. The sudden drop in Bitcoin’s price has left many investors surprised and searching for answers.
Reasons Behind Bitcoin’s Sharp Fall: ETF Approval Doubts and Sell-Offs
One of the main reasons attributed to the fall in Bitcoin’s price is the lower likelihood of the approval of a spot bitcoin ETF. The highly anticipated approval of a Bitcoin ETF could have provided legitimacy and mainstream acceptance to the cryptocurrency. However, experts believe that the chances of approval have decreased, leading to uncertainty and a negative impact on the market.
Additionally, the decline in stocks of companies that are involved in crypto mining has also contributed to the fall. Weakness in these stocks, combined with sell-offs in various crypto-related U.S. stocks, has increased market skepticism and further driven down Bitcoin’s price.
Ethereum, Solana, Ripple, Cardano Follow Bitcoin’s Lead, Experiencing Significant Losses
The impact of Bitcoin’s fall is not limited to just Bitcoin itself. Other major cryptocurrencies like Ethereum, Solana, Ripple, and Cardano have also experienced significant losses. Ethereum, the second-largest cryptocurrency by market capitalization, lost 6.91 percent of its value, trading at $2,228. Similarly, Solana fell 12 percent, Ripple lost 13 percent, and Cardano fell over 10 percent in the past 24 hours. This indicates a broader trend in the crypto market, with many cryptocurrencies mirroring Bitcoin’s movements.
Optimism Fades as Matrixport Report Predicts SEC Rejection of Bitcoin ETF Proposals
Despite the optimism surrounding the potential approval of a Bitcoin ETF, financial services firm Matrixport has presented a different perspective. In a report, Matrixport rebuffs the optimism and predicts that the Securities and Exchange Commission (SEC) will reject all Bitcoin ETF proposals in January. The report cites political reasons and a lack of a critical requirement that needs to be met before the SEC approves. This prediction has further dampened the market sentiment and added to the overall skepticism surrounding the approval of a Bitcoin ETF.
Livemint Achieves Milestone as Fastest Growing News Website Globally
On a positive note, Livemint, the renowned news website, has achieved a significant milestone as the fastest growing news website globally. With its insightful newsletters, real-time stock tracking, breaking news coverage, and personalized newsfeed, Livemint has established itself as a trusted source for the latest news and information. The accomplishment highlights the growing popularity and influence of digital news platforms in the modern era.
In conclusion, the recent fall in Bitcoin’s price can be attributed to several factors, including doubts about the approval of a Bitcoin ETF, sell-offs in mining-related stocks, and a broader market sentiment of skepticism. The impact of this fall is not limited to Bitcoin alone, as other major cryptocurrencies like Ethereum, Solana, Ripple, and Cardano have also experienced significant losses. While there was optimism surrounding the approval of a Bitcoin ETF, a report from Matrixport predicts that the SEC will reject all proposals, further dampening market sentiment. Amidst these developments, Livemint has emerged as the fastest growing news website globally, offering a comprehensive and personalized news experience for its readers.
Analyst comment
Negative news: Bitcoin Plunges 6% in 24 Hours, Slumping to $42,685: What Caused the Fall?
As an analyst, the market is likely to experience increased volatility and uncertainty in the short term due to the sharp fall in Bitcoin’s price. The doubts about the approval of a Bitcoin ETF and sell-offs in mining-related stocks have contributed to the negative sentiment. The prediction of the SEC rejecting all Bitcoin ETF proposals adds to the skepticism. Other major cryptocurrencies have also experienced significant losses, indicating a broader trend. However, Livemint’s achievement as the fastest growing news website globally highlights the growing popularity and influence of digital news platforms.
