Bitcoin and Ethereum Prices Plunge After Reaching All-Time Highs

Bitcoin and Ethereum Experience Sharp Declines

The prices of Bitcoin and Ethereum took a significant hit as they dropped sharply on Thursday, erasing recent gains and causing turmoil in the crypto market.

Market Correction Amidst Anticipation of Federal Reserve Speech

Investors are awaiting a speech from Federal Reserve Chair Jerome Powell, where he is expected to provide insights into the future monetary policy direction of the U.S. This anticipation has led to a correction in the crypto market, with stock market indices also trading slightly lower.

Liquidation of Long Positions Sparks Selling Pressure

Crypto futures traders who held long positions on Bitcoin, Ethereum, and other cryptocurrencies faced forced liquidations due to the dip in prices. Approximately $617 million in positions were liquidated in the past day, with a significant portion belonging to long positions.

Impact on Other Major Cryptocurrencies

Alongside Bitcoin and Ethereum, other major cryptocurrencies like Dogecoin and Solana also experienced price declines. Despite this, the overall market has seen significant gains in recent days following Joe Biden’s election win.

Promises of Crypto Support by President-Elect Trump

President-elect Donald Trump has expressed support for the crypto industry, making promises to boost the sector and position the U.S. as a leader in cryptocurrency innovation.

Edited by Andrew Hayward