BTC Drops 5%, ETH & SOL Falls Over 10%: Crypto Prices Fall
Nova Reyes
Markets Navigator
TL;DR
Bitcoin dropped 5%, Ethereum fell over 9%, and Solana plunged by 13% on December 11, 2023. This decline is attributed to liquidity issues, high funding rates, and parabolic price movements.
Key Takeaways
- Bitcoin fell from $43,800 to $41,780, currently at $42,206.
- Ethereum and Solana experienced declines of over 9% and 13%, respectively.
- Liquidity issues and scams have impacted investor confidence.
- High funding rates contributed to an overheated futures market.
- Analysts suggest potential for V-reversals in Bitcoin's price.
What happened? Crypto Prices Fall:
On December 11th, 2023, Bitcoin dropped by 5% during the early Asian session, falling from $43,800 to $41,780. As of the time of writing, Bitcoin's price is $42,206, which is still 4.2% lower than the previous year. This marks the largest dip since mid-October when Bitcoin surged significantly.
The Kobeissi Letter, a digital market analyst, noted that Bitcoin is taking a breather after eight consecutive weeks of gains, raising concerns about liquidity drying up.
Altcoins were more severely affected, with Ethereum falling over 9%, XRP losing over 10%, Solana plunging by 13%, and Cardano dropping 14%. Some altcoins have partially recovered from these losses.
What are the reasons behind Crypto Prices Fall:
1. Massive amount of Liquidity:
Recent weeks have seen an increase in crypto scams, with November 2023 being particularly damaging, involving over $363 million in liquidity issues. This has led investors to sell Bitcoin to mitigate future risks.
2. Funding rates:
Funding rates for Bitcoin and Ethereum were notably high, reaching 0.15% last week, contributing to an overheated perpetual futures market. Analysts believe that the recent price drop is necessary for establishing a healthier market.
3. Parabolic Movements:
Analysts have observed that Bitcoin's price often shows parabolic movements before a drop. Since October, Bitcoin's price has surged, indicating a potential price correction.
Where is Bitcoin, ETH & SOL Heading? Crypto Prices Fall or Surge
According to CrediBULL Crypto, major market flushes may lead to more common V-reversals rather than prolonged sideways movements. Crypto Rover predicts that Bitcoin may drop to $39,700 before surging again due to potential ETF approvals.
Ethereum, Solana, and Cardano currently show low probabilities for immediate price jumps, while XRP stabilizes.
Stay Tuned!
The crypto market remains dynamic, and the recent price drops highlight its volatility. Stay updated with Coin Informer for the latest news and insights.