February 21, 2024

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Bitcoin wipes nearly a week of gains in 20 minutes, falling under $41K

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Bitcoin wipes nearly a week of gains in 20 minutes, falling under K

The price of Bitcoin (BTC) briefly fell below $41,000 following a sudden 6.5% drawdown from $43,357 to as low as $40,659 in just 20 minutes at 2:15am on Dec. 11 (UTC). 

At the time of publication, Bitcoin was trading slightly up from the local low at $41,960 per TradingView data

Bitcoin briefly fell 6.5% to $40,659 before evening out just below $42,000. Source: TradingView

Ether (ETH), the second-largest cryptocurrency by market cap, also witnessed an abrupt decline, falling more than 8.9% in the same time frame. The price of ETH has since stabilized and is trading for $2,233, down 5.3% on the day.

Other large-cap crypto assets including Binance Coin (BNB), Ripple (XRP) and Solana (SOL) also posted losses. 

According to data from CoinGlass the brief drop caused more than $270 million worth of long positions to be liquidated. The decline also wiped out some $1.2 billion in open interest on BTC, and is currently sitting around $17.9 billion. 

More than $270 million worth of BTClong positions were liquidated by the sudden drop. Source: CoinGlass

Bitcoin had just closed its 8th green weekly candle, according to an X post from Wolf of All Street’s Scott Melker, who questioned when a correction was coming, just a few minutes before it took place.

The drawdown marks the largest single-day decline for Bitcoin in over a month, with the asset having growing more than 12% over the course of the last 30 days. 

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