The cryptocurrency market has faced a significant correction today. Top assets are in the red zone in the daily charts. Bitcoin (BTC) has dipped to the mid-$96,000 level. Other assets seem to follow BTC’s downward trajectory. According to CoinGlass data, the market faced $1.76 billion of liquidations in the last 24 hours. The crypto analysis firm notes that the most significant liquidation order happened on Binance for ETH-USDT, valued at $19.69 million.
Also Read: Toncoin (TON), Solana (SOL) Next in Line for New All-Time Highs?
Source: CoinGlass
Why Is The Cryptocurrency Market Down?
Several altcoins hit new all-time highs over the last few weeks. Solana (SOL), BNB, and TRON (TRX) hit new peaks within a very short time from each other. Bitcoin (BTC) also hit several new peaks over the same time frame. The latest cryptocurrency market correction could be due to investors booking profits after the latest rally.
Another possibility could be Google’s new Willow quantum computing chip. The powerful chip could solve a standard computation in under five minutes, which usually would have taken more than the universe’s age. Many believe this chip could break Bitcoin’s (BTC) cryptography.
Source: Coinpedia
Also Read: Cardano: Can ADA Continue November Surge to $5 in 2025?
It is also possible that market participants were anticipating an altcoin season. Bitcoin’s (BTC) brief climb to $100,000 on Dec. 9, 2024, may have thwarted any hopes of an altcoin season. The development may have led cryptocurrency investors to reshuffle their holdings.
When Will The Market Recover?
The latest cryptocurrency market dip could be a temporary correction. We may witness top cryptocurrencies pick up the pace very soon. The dip also presents an opportunity for investors to increase their holdings.
According to CoinCodex, Bitcoin (BTC) will begin an upward ascent very soon. The platform anticipates the asset to trade at $113,739 on Dec. 31, 2024. Hitting $113,739 will be a new all-time high for the original cryptocurrency. It will also entail a rally of about 17.47% from current price levels.
Source: CoinCodex
Also Read: Amazon Stock (AMZN) To Surge in 2025 If It Buys Bitcoin?
With a pro-cryptocurrency leadership set to take power in the US, we may experience an extended bull run this cycle. President-elect Donald Trump has named a White House Crypto Czar to bring in clear regulations for the industry. The move may lead to a significant rise in crypto investments.
