Crypto Market Crash: Is This the End of the Bull Run?

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As a seasoned researcher with over a decade of experience in the volatile world of cryptocurrencies, I have witnessed countless market cycles and learned to navigate the turbulent seas that characterize this industry. Today’s crypto market crash, with Bitcoin dropping to $98.8K, is yet another reminder of the inherent risks associated with investing in this space.

Over the past several weeks, crypto investors have experienced a series of escalating gains and record-breaking rallies in the cryptocurrency market. Today, however, a sudden downturn occurred, causing the price of Bitcoin to plummet to $98,800. This token had reached its peak only a few days ago, surging to an all-time high (ATH) of $103,900 due to the victory of Donald Trump in the US elections on November 6, which sparked a rally. Lately, the rally has stalled as the token found it challenging to break through consolidation, leaving some investors worried that the bull market may be nearing its end.

In contrast to most prominent altcoins that are grappling with losses on their charts and shedding substantial gains, PEPE, X Empire, and a few others have shown positive momentum. Notably, the value of PEPE reached an all-time high, while the price of X Empire increased by 47% over the past week, bucking the general trend.

Top Reasons Behind The Today’s Crypto Market Crash

The crypto market has been bullish for days but seems to be heating with the days-long impressive performance. As the Bitcoin price struggled to achieve the $100k mark after hitting the ATH four days ago, the selling pressure began to build on the token, where the Bhutan government alone sold $40M Bitcoin. Additionally, the Coinglass liquidation reports show high turbulence in the market, with 204,384 traders liquidating $509.48M, which is a sign of volatility. Moreover, the December end fears of further drops. Around 39,960 Bitcoin options contracts will expire on December 27, which is unsettling.

It’s worth noting that the price of Ethereum dropped by 3% in the last 24 hours following Justin Sun selling $119 million worth of ETH. This decline is likely due to Ethereum reaching a significant milestone of $4K earlier in the day, which triggered liquidation and increased selling pressure across other altcoins, causing a market-wide crypto crash. Furthermore, the Cardano Foundation’s X account was compromised, adding to the bearish sentiments in the trading community.

As a researcher delving into the crypto realm, I’ve observed that the market has experienced a downturn, a development many analysts had predicted due to escalating selling pressure following extended periods of growth. One such analyst suggested that while the $100K milestone was significant and potentially driven by investors’ affinity for round numbers, it might not have any more momentum to fuel this rally further. Yet, they did hint at a potential rebound, albeit with a limited scope.

Another analyst anticipated that Donald Trump’s inauguration could shake it down even further.

I concur. Let’s envision the aspirations of post-Election times, but remember that the events following Inauguration might seem more like reality than our dreams. However, this initial phase shouldn’t be mistaken for the final outcome, despite its potential to unsettle those with a fragile commitment.

— Chris Burniske (@cburniske) December 6, 2024

Is This The End of the Bull Run?

In contrast to the current dip in Bitcoin’s price and the overall crypto market slump, many analysts are hesitant to call this the end of the bull run. Instead, they remain hopeful for a continued upward trend, particularly leading up to 2025. Some even predict this could be the start of an altcoin boom, given the increasing growth in the altcoin market.

In recent days, Bitcoin’s decreasing dominance has led some to view it as a sign that altcoins are becoming more powerful in the market. The Altcoin Season index is currently at 73, which is quite high, but it dropped from 86 at the start of the month, indicating an entry into what some believe is the Altcoin season, though it appears to have been brief.

At present, the crypto market trend seems to be the anticipated dip, but it hasn’t definitively ended the ongoing bull run. The upcoming days could significantly alter this situation due to key events like the FED meeting, CPI, PPI, and Import/Export Price Index reports, which might steer the market in various directions. On the other hand, given the high volume of liquidations and the crypto market downturn, it presents a chance for many investors to purchase cryptos at reduced prices, potentially sparking a rebound as new participants join the market.

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2024-12-09 19:08