legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Impact of Massive Selloff in Crypto Market

The cryptocurrency market experienced a significant selloff in the Asian trading hours, leading to a 5% drop in the global cryptocurrency market cap, which now stands at $1.57 trillion. The price of Bitcoin plunged by 7%, while other major altcoins such as Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), DOGE, and SHIB also recorded substantial selling within a short period of time. Furthermore, the Crypto Fear & Greed Index dropped from 82 to 80, signaling extreme greed in the market.

Reasons for Sudden Fall in Crypto Market

Traders had been anticipating a correction in the cryptocurrency market as prices continued to surge. Well-known Bitcoin analyst Willy Woo pointed out that the price of BTC had doubled in just two months without any significant pullbacks, making a correction quite expected. Corrections and pullbacks play a crucial role in confirming further rallies, especially during periods of ‘extreme greed’ and significant macroeconomic events.

A potential correction had been warned about by CoinGape earlier in the week. It is expected that the price of BTC will continue to decline, as the Bitcoin CME Gap at $39.7K needs to be filled before a potential rally. Additionally, there were notable liquidations of approximately 5% on CME and 8% on Binance in terms of open interest.

Moreover, data from CoinGlass indicated a massive liquidation of over $400 million on December 12, with $354 million worth of long positions liquidated in just an hour. Furthermore, more than 119,000 traders were liquidated in the last 24 hours, with the largest single liquidation order occurring on OKX’s BTC-USDT-SWAP, worth $8.23 million. This led to the market being ‘in the red’ on that day.

The release of CME and PPI inflation data, along with the U.S. Federal Reserve announcing its year-end interest rate decision this week, further prompted investors to liquidate their holdings.

Expected Further Decline in Bitcoin and Ethereum Prices

It is anticipated that there will be further pullbacks in the prices of Bitcoin and Ethereum in the U.S. trading hours, as traders and whales contemplate making another entry near support levels.

Renowned crypto analyst Credible Crypto noted that the failure to breach the $40,000 level as expected has resulted in a complete reset on open interest, leaving the bullish market structure intact and setting it up for a potential rally past $50,000. He believes that the price of BTC could reach $60,000 in the coming weeks, and he maintains a target of $3,500 for ETH price.

Currently, the price of Bitcoin is trading at $42,160, retracing earlier gains over the last few hours, with the 24-hour low and high at $40,521 and $44,034, respectively.

The price of Ethereum is at $2,243, down by 5% in the last 24 hours, with a 24-hour low and high of $2,171 and $2,376, respectively.

How AI legalese decoder Can Help

The AI legalese decoder can assist in analyzing and understanding the legal implications of the massive selloff in the cryptocurrency market. By decoding complex legal jargon and providing clear and concise explanations of legal documents, the AI legalese decoder can help investors and traders navigate potential legal issues arising from the market volatility. Additionally, it can aid in interpreting regulatory announcements and their impact on the cryptocurrency market, enabling stakeholders to make informed decisions amidst challenging market conditions.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link