Bitcoin and other cryptocurrencies, such as ethereum, XRP, and solana, have experienced a sharp decline despite a large $10 trillion bet on the bitcoin price. Subscribe to Forbes’ CryptoAsset & Blockchain Advisor to stay ahead of the market and uncover potential blockbuster investments.
The bitcoin price has dropped nearly 10% in the last 24 hours, causing a ripple effect on the prices of other top ten cryptocurrencies. This has resulted in a loss of around $100 billion for the combined crypto market, following the surge of a bitcoin spot exchange-traded fund (ETF).
Legendary trader Arthur Hayes had previously warned about a potential 30% crash in the bitcoin price due to actions taken by the Federal Reserve. He predicted a “vicious washout” in the coming months, but also advised against taking on any additional risk until April.
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In 2022, the crypto market experienced a major crash that wiped out $2 trillion from the combined value of bitcoin, ethereum, XRP, solana, and other cryptocurrencies. This was largely attributed to the Federal Reserve’s response to rising inflation.
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The bitcoin price has rebounded since the 2022 crash, thanks in part to Wall Street’s efforts to launch a spot bitcoin ETF. The recent approval of several funds by the SEC has also contributed to the rise in the bitcoin price.
According to CK Zheng, chief investment officer at crypto hedge fund ZX Squared Capital, if there are any significant pullbacks in the short term, it could present a great opportunity to add more long positions.
Follow Billy Bambrough on Twitter for more updates on technology, finance, and economics. Billy has been covering the rise of bitcoin and other cryptocurrencies since 2012 and is considered an expert in the field. Disclosure: Billy occasionally holds a small amount of bitcoin and other cryptocurrencies.