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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
12/10/2024

Bitcoin Slips, Altcoins Plunge: Is the Bull Market Still On?

After briefly breaking above $100,000, Bitcoin failed to hold its momentum. Last night, the price slid to around $94,150 and is currently hovering near $96,000 after a mild recovery. Meanwhile, while Bitcoin's decline was modest, Ethereum faced much heavier selling pressure, dropping from $4,000 to $3,500 before stabilizing near $3,700 — down more than 5% in a single day. Ethereum's instability triggered a wave of sell-offs across the broader altcoin market. Altcoin Carnage In the past 24 hours: * SOL fell 8%, SUI 12%, APT 16%, SEI

Bitcoin Slips, Altcoins Plunge: Is the Bull Market Still On?

After briefly breaking above $100,000, Bitcoin failed to hold its momentum. Last night, the price slid to around $94,150 and is currently hovering near $96,000 after a mild recovery.

Meanwhile, while Bitcoin's decline was modest, Ethereum faced much heavier selling pressure, dropping from $4,000 to $3,500 before stabilizing near $3,700 — down more than 5% in a single day. Ethereum's instability triggered a wave of sell-offs across the broader altcoin market.

Altcoin Carnage

In the past 24 hours:

  • SOL fell 8%, SUI 12%, APT 16%, SEI 16%.
  • AI-related tokens like WLD dropped 19%, ARKM 20%.
  • Layer 2 projects OP and ARB lost 14% and 17%, respectively.

Leverage and Liquidations

According to Coinglass:

  • $1.725 billion was liquidated in 24 hours, with $1.557 billion coming from long positions.
  • 574,168 traders were liquidated, surpassing the count from the infamous "3/12" crash event.

Why Prices Dropped

  1. Excessive leverage:
    • Bitcoin open interest surged from $39 billion in early November to $60 billion in December, signaling rampant speculation.
    • Stablecoin lending rates on platforms like Binance and Bybit spiked above 50%, indicating heavy borrowing to fund leveraged trades.
  2. Deteriorating global liquidity:
    • Bitcoin and the broader crypto market are increasingly sensitive to macroeconomic conditions.
    • Despite expectations of Fed rate cuts, institutions like Morgan Stanley are only forecasting two 25-basis-point cuts through early 2025, keeping liquidity constrained.

Historical Parallels

  • Liquidity peaks have historically preceded major corrections in prior cycles:
    • In December 2017, Bitcoin's rally ended roughly a month after liquidity began to weaken.
    • In April 2021, altcoins fell 50% after Bitcoin hit its cycle top.

Analyst Juan M. Villaverde of Weiss Crypto warns that this may not be the ultimate top, but recent market health is a serious concern — altcoin crashes like this are often a hallmark of unsustainable speculative peaks.

Institutional Activity

Despite the volatility, data from CryptoQuant shows a sharp spike in the Coinbase premium during Bitcoin's downturn, suggesting that U.S. institutional investors were actively buying the dip while retail traders panic-sold.

Outlook

  • Matrixport notes that stablecoin inflows have halved — from $8 billion to $4 billion per week — signaling slowing momentum.
  • While an extended consolidation phase is expected, the broader outlook for sustained growth into 2025 remains cautiously optimistic.
  • The key level to watch for Bitcoin is $100,000 — failing to reclaim it could drag altcoins back to their starting points. If Bitcoin stabilizes above that level, the altcoin recovery could gain traction.