Hassan Maishera
TL;DR
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BTC briefly dropped to the $84,400 region on Thursday but has now bounced back above $85k.
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Altcoins suffered huge losses on Thursday, triggering $550 million in liquidations.
Bitcoin Briefly Drops Below $85k
The cryptocurrency market has continued its bearish performance in December, with Bitcoin recording losses since the start of the week. The leading cryptocurrency lost 2% of its value on Thursday and briefly dropped to the $84,400 region.
However, it has now slightly bounced back and is now trading above $85k once again. The bearish performance came after Bitcoin rallied to the $89k level following the CPI data in the United States.
The November U.S. Consumer Price Index data came in with headline inflation tumbling all the way to 2.7% from 3% previously. That data had some quickly penciling in another Federal Reserve rate cut in January, causing Bitcoin to rally from $86k to $89k.
However, the rally was short-lived as Bitcoin resumed its downward trend, this time breaking below the $85,569 support level.
Altcoins Suffer Huge Losses
Bitcoin’s bearish performance saw altcoins record huge losses over the last 24 hours. Ether continues to trade below $2,900, while Ripple’s XRP retested the $1.77 support level.
Binance’s BNB coin briefly dropped below $800, erasing months of bullish price action. SEI, SUI, LINK, ADA, DOGE, TRX, and other leading altcoins are all trading in the red.
Thanks to the latest performance, the total cryptocurrency market cap now stands at $2.87 trillion, down from the $2.92 trillion recorded on Wednesday.
Furthermore, data obtained from CoinGlass revealed that the wild price swings across the board triggered $550 million in liquidations over the past 24 hours on derivatives markets, with both short and long positions recording losses.
