In a dramatic turn of events, the crypto market witnessed a sudden collapse in digital asset prices, with bitcoin leading the plunge.
The price of bitcoin plunged more than 8%, plummeting from $43,810 to $40,272 in less than an hour.
The shockwave resulted in a staggering $353.61 million in liquidated positions across the market spectrum, catching many bullish investors off guard.
In BTC to USD alone, 88.7% of the liquidated positions were long, totaling nearly $100 million over the past 12 hours.
Calm before the storm
However, for market participants, this may be just the calm before the storm, as all eyes turn to Wednesday, December 13th on the calendar, when the U.S. Federal Reserve is set to make a crucial interest rate decision.
The crypto market, now more institutionalized than ever, reacts strongly to such decisions, often more profoundly than traditional financial markets under the Fed’s monetary policy.
The last time the Federal Reserve made a similar decision on November 1st, there was a 3% drop followed by a robust 5.5% rise. Such market dynamics are not uncommon during these events and signal an imminent shakeout.
For inexperienced investors, the advice is clear: prepare for potential turbulence and consider getting out of the market on the big day in 48 hours.
