- Bitcoin plunged to $42,500, sparking a widespread market crash.
- One-hour trading volume increased while many long positions were wiped out.
Enthusiasm for the 2024 Bitcoin (BTC) bull market has faced a setback, with the price down 4.85% in the past hour at press time.
According to CoinMarketCap, BTC opened above $44,000 on January 3, with many predicting that the coin would reach $50,0000 before the end of the month.
However, everything may be off for now, as BTC’s price at press time was just above $42,500. Moreover, Bitcoin was not the only cryptocurrency affected.
Solana (SOL) fell 7% in an hour and XRP fell 12%. Ethereum (ETH) also joined, plummeting 5.30%.
Will Bitcoin ETF be delayed?
At press time, AMBCrypto discovered that Matrixport reported shortly before the dump that the US SEC would not approve a Bitcoin ETF this month.
This news caused panic throughout the market. Additionally, economist and trader Alex Kruger previously noted that a collapse is coming.
In addition, Bitcoin trading volume soared accordingly. At press time, BTC trading volume exceeded $40 billion. This was evidence of high selling pressure. The liquidation also affected traders, especially buyers.
According to Coinglass, more than $500 million was lost according to Liquidation HeatMap. Bitcoin took a big part of the hit, at $72.13 million.
Details from HeatMap also show that buying was the most affected.
Source: Coinglass