Injective

Bitcoin

Polkadot

James

The Bitcoin (BTC) market has experienced a tumultuous week, witnessing its most significant single-day drop of 2023, which at one point amounted to an 8.1% decrease. 
This dramatic shift in the market prompted speculators to panic sell, with the BTC price edging towards the $40,000 mark. The latest on-chain data indicates a significant offloading of Bitcoin by short-term holders (STHs). 
Analytics firm Glassnode reported that STHs, defined as entities holding BTC for 155 days or less, sent a substantial $1.93 billion worth of coins to exchanges on December 11, followed by an additional $2.08 billion the next day. 
<img decoding="async" src="https://s3.cointelegraph.com/uploads/2023-12/676c31cd-2229-49f5-9037-6b6b8033b253.jpeg" alt="676c31cd 2229 49f5 9037 6b6b8033b253" title="Bitcoin faces major sell-off as speculators react to price correction 18"> 
These figures mark a record high for STH selling pressure in the past 18 months, with both profitable and loss-bearing entities joining the sell-off. 
This level of selling activity was last seen in June 2022, triggered by the looming collapse of blockchain firm Celsius. 
James Van Straten, a research and data analyst at CryptoSlate, <a href="https://twitter.com/jimmyvs24/status/1734541373041209822" rel="nofollow noopener" target="_blank">highlighted</a> the significance of these movements on X (formerly Twitter), noting that “$2B in total, with $1.1B in loss” was transacted, likely by retail investors who bought Bitcoin seeing its year-to-date rise of 150%. 
As BTC stabilized around $41,000 ahead of the U.S. interest rate decision, the crypto market is closely monitoring the Federal Reserve’s upcoming Federal Open Market Committee (FOMC) meeting. 
The Fed is expected to maintain rates between 5.25% and 5.5%, following a trend of disinflation evidenced in the latest Consumer Price Index (CPI) data. 
Ether (ETH), the second-largest cryptocurrency, also saw a decline, dropping 1% and trading below $2,200. In contrast, altcoins like Polkadot (DOT), Cosmos (ATOM), and Injective (INJ) witnessed gains between 10%-20% over the past 24 hours. Notably, Avalanche (AVAX) surpassed dogecoin (DOGE) in market capitalization, doubling its price in a month. 
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This latest market movement underscores the volatile nature of cryptocurrencies and the impact of broader economic factors, such as interest rates and inflation, on investor sentiment. 
As the crypto community awaits the Fed’s decision, the market remains cautious, with a keen eye on the potential ripple effects across various digital assets.

Bitcoin faces major sell-off as speculators react to price correction

crypto.ro global

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