Bitcoin experienced a significant loss of five per cent on Thursday, January 4, with the crypto asset being valued at approximately $45,201 (Rs. 27.6 lakhs). Just 24 hours earlier, the same car was priced at $43,070 (Rs. 35.8 lakh). According to a report by a crypto-financial services firm, this drop was attributed to slippage caused by expected rejection of Bitcoin SEC US proposals on EFT. Market analysts predict that this volatility will continue until the SEC makes a decision on ETF approval.
The report from Matrixport caused panic among some market participants, leading to selloffs. However, Bitcoin quickly recovered and is currently trading around the $43,000 (Rs. 35.8 lakh) mark. Edul Patel, CEO of Mudrex, stated that Bitcoin’s current support is at $43,150 (Rs. 35.9 lakh) with resistance at $43,600 (Rs. 36.3 lakh).
Following BTC’s loss, Ether also experienced a price slash of 5.92 percent and is currently trading at $2,227 (Rs. 1.8 lakh). Other altcoins such as Tether, Ripple, Solana, Cardano, Avalanche, and Dogecoin also registered losses on Thursday.
In addition, cryptocurrencies like Polkadot, Polygon, Chainlink, and Shiba Inu also saw a decline in their value. However, some underdog crypto assets such as Leo, Iota, Cartesi, Dogefi, and Bitcoin Hedge managed to gain small profits.
According to the CoinDCX and CoinSwitch market desks, the sudden decline in BTC triggered a more than 20 percent drop in Altcoins within minutes. The cause of this decline remains uncertain, with some speculating about a report on BTC spot ETF denial from Matrixport, although this information may not be accurate.
While the overall crypto market cap dropped by 4.91 percent in the last 24 hours, the total crypto sector valuation currently stands at $1.65 trillion (Rs. 1,37,45,283 crore). This indicates that big money is beginning to flow back into the crypto market.
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