Bitcoin Plummets by $10,000 in 2024’s Most Devastating Day for Cryptocurrency Market

In the last 24 hours, there has been a significant liquidation of Bitcoin, resulting in a massive sell-off that pushed the price below $50,000 and the critical $60,000 mark. This dramatic decline, amounting to a staggering $10,000 drop in value, has shaken the confidence of many traders and investors in the market.

The primary catalyst for this sell-off was a massive $1 billion liquidation in the cryptocurrency market, triggering a cascade of selling pressure that drove Bitcoin prices lower. The market experienced a surge in selling activity, overwhelming the market with a noticeable spike in volume. As a consequence of the abrupt price drop, Bitcoin is now in a precarious position, testing the 100 EMA support level.

Despite the resilience shown by some prominent traders on Binance, with nearly 70% of them maintaining long positions on Bitcoin in anticipation of a future rally, the sharp decline and significant liquidation activities indicate an overall pessimistic market sentiment prevailing.

The ongoing conflict between traditional value stores like gold and Bitcoin has further exacerbated Bitcoin’s downturn. Market conditions have been exacerbated by Warren Buffett’s decision to divest stocks, including Apple, and hold a substantial $277 billion in cash. This, coupled with the NASDAQ’s nearly 6.5% decline and the sharpest drop in Japanese stocks in over eight years, has created a perfect storm for Bitcoin.

Ethereum, mirroring Bitcoin’s downward trajectory, is facing its own challenges. The price of ETH has plunged, breaching crucial support levels and causing concern among investors. Currently trading around $2,356, Ethereum’s decline was primarily driven by institutional selling pressure and the recent over $1 billion market-wide liquidation.

Institutional investors selling off ETH have intensified the market’s downward momentum, triggering a chain reaction of sell orders. Ethereum is now testing critical support levels, much like Bitcoin, with the 200 EMA serving as a significant focal point. Should this level be breached, further declines may follow, leading to more substantial losses.

Shiba Inu has witnessed a sharp price decline, dropping from around $0.00002 to $0.000012. This sudden devaluation has raised concerns among investors, hinting at potential challenges ahead for the cryptocurrency. SHIB’s ability to recover is in doubt following a significant sell-off that pushed it to these lows, with the chart indicating a clear downtrend. The memecoin’s price decline of 65% since its peak earlier this year underscores the growing difficulties it faces.

Breaking below crucial support levels, SHIB’s price is near the critical support zone of $0.00001, adding further pressure. A breach of this barrier could lead to additional losses, potentially adding another zero to its value, signaling bearishness for investors. On-chain metrics paint a bleak picture, with around 1.5 trillion transacted in the last 24 hours among whales, indicating a lack of significant buying or selling power among large wallets.