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- Bitcoin plummeted by over 8% in a flash crash, dropping from $45,000 to $41,200.
- Several major crypto exchanges, including Coinbase, Binance, Kraken, and Bitget, temporarily suspended trading due to overload.
The cryptocurrency market experienced a significant setback as prices of Bitcoin and numerous altcoins plunged by 8% to 20% in a flash crash. Some of the biggest losers include Bonk (-16%), IOTA (-14%), Solana (-12%), Filecoin (-14%), and several other small-cap altcoins.
While the exact cause remains uncertain, various rumors are circulating. The most plausible one suggests a coordinated sell-off among the largest institutional investors. This strategy aims to acquire assets at lower prices before the potential approval of a Bitcoin ETF and to maximize profits before the Bitcoin market potentially sets new all-time highs this year.
On a global scale, no Black Swan event, whether economic or industrial, has emerged to explain such a violent market movement. Events such as FTX 2.0 issues, Terra implosion, or the banning of Bitcoin in a major economy can be largely ruled out.
However, the approval of a Bitcoin ETF in the near future seems increasingly likely, and preparations may be underway. Currently, the market appears to have stabilized, at least in the short term, hovering around the $42,500 mark. As of the time of writing (03.01.2024 14:02), the price stands at $42,572.72, as indicated by our BTC price chart.
Our Kraken account indicates that trading was suspended during the flash crash. Similar situations were observed upon further checks at Binance, Bitget, and Coinbase. The only exchange where we could execute trades shortly afterward was Bitpanda.
Can Bitcoin reach a new all-time high in 2024?
While the imminent approval of the Bitcoin ETF could potentially trigger a short-term bull run, it’s important to note that there is no guarantee Bitcoin will reach a new all-time high within the next three months. Overall, sentiment remains bullish, but we anticipate the possibility of another correction that could push the Bitcoin price below the $40,000 threshold before any potential halving.
Historically, Bitcoin’s price has experienced significant gains roughly 6 to 9 months following a halving event, leading to a robust long-term rally. However, whether this trend will persist in 2024 remains uncertain.
