In the past 24 hours, the cryptocurrency industry has experienced significant volatility, with Bitcoin (BTC) witnessing a sharp decline of over 6 percent. This drop drove Bitcoin’s price to a daily low of approximately $94,725. The impact of this sudden downturn wasn’t confined to Bitcoin alone, as the altcoin sector also faced considerable repercussions. The TOTAL2 index, which tracks the performance of altcoins, plunged by over 15 percent, translating to a loss exceeding $258 billion. Consequently, the overall crypto market capitalization fell by more than 7 percent, settling around $3.58 trillion during the early Asian session on Tuesday, December 10. Despite these challenges, a few altcoins managed to post notable gains, including Baby Doge Coin ($BABYDOGE) and Movement (MOVE).
Major Factors Contributing to Today’s Crypto Selloff
Quantum Bitcoin FUD
Monday witnessed a significant announcement from tech giant Google, unveiling Willow, their next-generation quantum chip. This chip can complete a benchmark computation in under five minutes, a task that would take the fastest supercomputers today an astonishing 10 septillion years—surpassing the universe’s known age. While this is a landmark development for technology, it created ripples of uncertainty across the cryptocurrency industry, particularly for Bitcoin (BTC). Bitcoin’s cryptography involves a difficulty adjustment that is typically longer than five minutes, potentially giving Google’s quantum chip a theoretical edge.
Despite these concerns, industry experts assert that Bitcoin can adapt to the challenges posed by quantum computing. Through necessary difficulty adjustments and security upgrades, Bitcoin is expected to remain resilient against such threats for decades to come.
Retrace of Bitcoin Countries
In another significant development, data analysis on Monday revealed that the Royal Government of Bhutan transferred 406 Bitcoins to QCP Capital, valued at approximately $40 million. As a substantial Bitcoin holder with a balance exceeding 11,000 Bitcoins, Bhutan’s actions are closely monitored and can significantly influence market sentiment. Simultaneously, reports emerged suggesting that El Salvador might relax its Bitcoin adoption strategies to secure a $1.3 billion loan from the International Monetary Fund (IMF).
Leveraged and Futures Market Cool-off
The cryptocurrency market also encountered intensified selling pressure due to heightened liquidations in the leveraged sector. Recent market data indicates that over 582,000 traders faced liquidations in the past 24 hours, with total liquidations surpassing $1.7 billion. Notably, long traders accounted for more than $1.5 billion of these liquidations, intensifying a long squeeze as many traders attempted to capitalize on the declining trend. As a result, the total crypto open interest (OI) decreased from over $138 billion to approximately $123 billion at the time of writing.
On the Flipside
Despite the abrupt selloff in the crypto market, institutional investors have persisted with their Bitcoin accumulation strategies. The total supply of Bitcoin available on centralized exchanges decreased by over 10,000, settling around 2.25 million. BlackRock’s IBIT, leading US spot Bitcoin ETF issuers, has been at the forefront of this accumulation trend, indicating a potential major rebound and bullish momentum in the near future.
“`
This enriched and expanded content provides a detailed overview of the recent cryptocurrency market events, integrating SEO-friendly strategies with appropriate HTML headings and enhanced stylistic elements.
