Bitcoin suddenly recorded a deep drop in the early Asian session, from $42,600 to $40,400, erasing what this cryptocurrency had achieved in the past week. However, BTC then recovered to the $42,000 threshold and is now trading at $42,351 on CoinMarketCap.
Ethereum was also negatively affected by the correction, falling more than 5% from $2,310 to $2,161 before temporarily returning to the $2,240 area.
The altcoin has grown very strongly in recent times – Solana also saw a significant drop from $72 to $64. However, unlike BTC and ETH, SOL price has rebounded strongly and has now almost regained all of what it lost when approaching the $70 area. Other big-cap altcoin such as AVAX, ADA, XRP, BNB also saw a decrease of 3-5%.
CoinGlass data showed that more than $280 million in positions were liquidated due to the recent dump, with nearly 96% in long positions.
This week, there will be two important macro news that can impact BTC price in particular and the crypto market in general:
Consumer Price Index data for November 2023 will be released on Tuesday, December 12 at 8.30am E.T.
The Federal Reserve’s next interest rate decision comes on December 13, with many predicting that the Fed will begin cutting interest rates in 2024.