Posted 12/11/2023, 9:40:00 PM
Bitcoin Plunges Over 7% in Major Crypto Market Flash Crash, Liquidating $520 Million in Leveraged Bets
- Bitcoin fell over 7% in its worst daily drop since August, with ether and other major cryptocurrencies also declining significantly
- The flash crash liquidated over $520 million in leveraged crypto positions, predominantly longs, intensifying the sell-off
- Analysts say the pullback was overdue given bitcoin's rapid gains and needed to shake out leverage and weak hands
- The correction helped reset an overbought market and crypto prices could rally to new highs by year-end
- Stronger dollar and cooling in crypto markets after big rally also contributed; outlook still remains positive