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Why are cryptos like Bitcoin, Ethereum and XRP crashing?

1min Read

Bitcoin’s rally was brought to a halt as prices plunged at press time over speculation that BTC ETFs have been denied.

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  • Bitcoin collapsed to $42,500, triggering a widespread market crash.
  • The 1-hour volume increased while many long positions were wiped out.

The enthusiasm about a Bitcoin [BTC] bull run in 2024 has faced a setback as the price fell by 4.85% in the last hour at press time.

According to CoinMarketCap, BTC started the 3rd of January above $44,000 with many predicting that the coin would hit $50,0000 before the month ends.

However, all that may have been put to rest at the moment as BTC’s press time price was a little above $42,500. Furthermore, Bitcoin was not the only cryptocurrency affected.

Solana [SOL] fell by 7% within the hour while XRP plunged by 12%. Ethereum [ETH] also joined in with a 5.30% plunge.

Bitcoin ETFs to be delayed?

At press time, AMBCrypto found that right before the dump Matrixport reported the U.S. SEC would not approve any Bitcoin ETFs this month.

The news sent panic waves around the market. Also, Economist and trader Alex Kruger noted earlier that a crash was coming.

Furthermore, Bitcoin’s trading volume surged as a result. At press time, BTC volume surpassed $40 billion. This was proof of high selling pressure. Liquidations have also affected traders, especially longs.

According to Coinglass, the Liquidation HeatMap showed that over $500 million had been wiped out. Bitcoin took a large part of the hit with $72.13 million.

Details from the HeatMap also showed that longs were the most affected.

Liquidation HeatMap

Source: Coinglass

 

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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