Crypto Market Shows Downtrend Following Sharp Correction Over the Weekend - Latest cryptocurrency news

Crypto Market Shows Downtrend Following Sharp Correction Over the Weekend

The crypto market is showing a downtrend today following a sharp correction over the weekend, led by Bitcoin. On December 10th, Bitcoin’s price dropped by 6.5% in just 20 minutes, erasing nearly a week’s worth of gains. As investors gain a better understanding of the factors behind this sudden correction, price movements in the crypto market continue to trend downward.

The significant drop in crypto assets led to an acceleration of liquidations in the futures market. Investors unaware of this process were faced with rapidly increasing liquidations of long positions.

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In the last 24 hours, long positions worth $350.3 million were liquidated in the crypto market, and $44.3 million was wiped out from the market in the last 12 hours. The liquidation of long positions in the futures market without buying pressure from the trade volume negatively affects crypto prices.

After the total market trading volume climbed above $37.6 billion on December 4th, a decline was observed each day. On December 10th, the daily trading volume in the crypto market was only $19 billion.

The decline in trading volume coincided with some analysts starting to worry about Bitcoin’s dominance in the market. On December 4th, Bitcoin dominance reached a monthly peak, just like the trading volume, causing concerns among many investors.

The crypto industry and regulatory bodies are experiencing interesting periods due to various misunderstandings about the real use of crypto assets or the insecurity in the market. On November 21st, the United States Department of Justice (DOJ) announced sanction actions and a settlement regarding the admitted crimes of CZ and Binance.

Binance’s compliance obligations were disclosed on December 8th, and a comprehensive monitoring process was initiated by the DOJ. Binance’s new compliance obligations also include cooperation in providing access to all documents, records, and sources upon request by U.S. authorities.

Risk assets, which are greatly influenced by investor sentiment, include Bitcoin and altcoins. Serious cryptocurrency regulations discussed so far, or in the worst case, the threat of direct legislation, continue to affect the crypto market on a monthly basis.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
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