Volatility Strikes Crypto Market: Bitcoin and Ether Decline, Iota and Cartesi Showcase Modest Gains
BTC Slides from $45,201 to $43,070 in 24 Hours: Volatility in Crypto Markets Continues
Bitcoin faced a significant setback on Thursday, January 4, experiencing a noteworthy five percent decline. Just a day earlier, the cryptocurrency was trading at $45,201 (approximately Rs. 27.6 lakh), but within 24 hours, its value slipped to $43,070 (approximately Rs. 35.8 lakh). This sudden drop followed a report by Matrixport, a crypto financial services firm, which predicted the potential rejection of Bitcoin spot ETF proposals by the US SEC (Securities and Exchange Commission). As a result, market analysts foresee ongoing volatility, at least until the SEC makes a decisive ruling on the approval of ETFs.
“The Matrixport report triggered panic among certain market participants, prompting selling pressures. Despite briefly plunging below $41,500 (approximately Rs. 35.8 lakh), Bitcoin swiftly recovered and is currently hovering around the $43,000 (approximately Rs. 35.8 lakh) mark. Bitcoin’s current support is pegged at the $43,150 (approximately Rs. 35.9 lakh) level, while resistance is anticipated at $43,600 (approximately Rs. 36.3 lakh),” stated Edul Patel, CEO of Mudrex in an interview with Gadgets360.
Following Bitcoin’s lead, Ether also faced a substantial downturn, with a 5.92 percent price decrease. As of the latest update, Ether was trading at $2,227 (approximately Rs. 1.8 lakh), indicating a $139 (approximately Rs. 11,580) reduction in value over the past 24 hours.
During Thursday’s trading, a majority of altcoins faced significant losses, with notable cryptocurrencies such as Tether, Ripple, Solana, Cardano, Avalanche, and Dogecoin witnessing declines. Other cryptocurrencies that experienced losses during this period included Polkadot, Polygon, Chainlink, Shiba Inu, and several others.
“The sudden downturn in BTC triggered a rapid 20 percent plunge in altcoins, albeit some managed quick recoveries, notably ARB and LDO. The precise cause behind this decline remains uncertain, with speculation swirling around a Matrixport report suggesting the denial of BTC spot ETF, though the accuracy of this information is currently under question,” highlighted the CoinDCX Research Team.
The overall crypto market cap dropped by 4.91 percent in the last 24 hours. At the time of writing, the crypto sector valuation stands at $1.65 trillion (roughly Rs. 1,37,45,283 crore), showed CoinMarketCap
“Standout performers of the day remained in the famous L2 Arbitrum, ARB (+ three percent), and liquid staking solution Lido Finance, LDO (+ eight percent). While the total liquidations of yesterday remained at more than half a billion dollars, total crypto exchange volumes crossed the mark of one trillion dollars after two years, which shows that big money has started to flow back into the crypto market,” the CoinSwitch market desk added.
