Investing.com– Bitcoin fell on Thursday, snapping two days of gains, as investors responded to a TradingView ruling and remained cautious about macroeconomic pressures following the U.S. Federal Reserve's hawkish stance.
fell 2.6% to $95,729.5 at 5:00 p.m. (CET) (22:00 GMT).
It fell below the key $100,000 mark last week after Federal Reserve officials signaled a slower pace for future cuts.
Bitcoin Falls as TradingView Bug Drives Volatility
Bitcoin retreated on Thursday as markets apparently responded to inaccurate chart data from TradingView.
The cryptocurrency fell to $95,000 after social media users pointed out an anomaly on TradingView's Bitcoin dominance chart, which incorrectly showed Bitcoin's share of the total crypto market capitalization falling to 0%.
Although the error was corrected, it allegedly caused sudden trading reactions that pushed lower.
According to data from CoinGlass, approximately $33 million worth of long Bitcoin positions were liquidated in four hours.
Bitcoin's market dominance has recently become a key focus for traders, as Bitcoin's rise to new all-time highs has left altcoins lagging behind.
The dominance briefly surpassed 61.5% in mid-November before retreating, raising expectations of a possible “alt season.”
Bitcoin was up nearly 5% in the previous two sessions but failed to continue the positive momentum on Thursday as investors became cautious about the prospects for speculative assets like cryptocurrencies after the Federal Reserve signaled fewer rate cuts. of interest in 2025.
Last week, Bitcoin recorded its first weekly decline since Trump's election victory in early November, after the Federal Reserve meeting halted the post-election rally.
The rally had taken prices to an all-time high of $108,244.9, after which prices fell due to profit-taking amid macroeconomic pressures induced by the Federal Reserve's rate outlook.
The central bank cut rates by 25 basis points but signaled just two rate cuts for next year, compared with earlier expectations of four cuts.
This shift led investors to reevaluate their positions in speculative assets like Bitcoin, which contributed to its price decline.
Russia uses Bitcoin in foreign trade
Russian companies have begun using Bitcoin and other cryptocurrencies for international payments after legislative changes allowed their use to help mitigate the impact of Western sanctions, Finance Minister Anton Siluanov said on Wednesday.
Sanctions have made trade with key partners such as China and Turkey more challenging, as local banks exercise extreme caution with Russia-related transactions to avoid attracting scrutiny from Western regulators.
In response, Russia legalized the use of cryptocurrencies in foreign trade this year and has initiated measures to regulate cryptocurrency mining, including Bitcoin. As the world leader in Bitcoin mining, the country is taking advantage of its position to navigate economic restrictions.
Crypto Price Today: Most Altcoins Down
Other cryptocurrencies fell on Thursday, following the decline of Bitcoin and as demand for speculative assets remained subdued after the hawkish Fed shook investor sentiment.
The world's No. 2 cryptocurrency fell 4% to $3,336.75. Ether has gained in the last three sessions but has not been able to fully recover from last week's drop.
The world's No. 3 cryptocurrency fell 6% to $2.17.
fell 3.6% and fell 6.7%, while it fell 5%. Among meme tokens, it lost 6%.
Crypto Markets Face Potential Volatility With Record Bitcoin Options Expiration Imminent
Crypto markets could face elevated volatility in the final days of 2024 as a major Bitcoin option approaches expiration. On Friday at 8:00 UTC, 146,000 bitcoin options contracts worth nearly $14 billion will expire on Deribit, the largest such event for the exchange. This represents 44% of all open BTC options and is expected to drive volatility.
Options give buyers the right to buy or sell an asset at a certain price in the future. Calls allow you to buy, while puts allow you to sell.
In addition to BTC, $3.84 billion in ETH options will also expire. ETH has fallen roughly 12% to $3,400 since the Fed meeting, and Deribit dominates over 80% of the global crypto options market.
Approximately $4 billion in BTC options, or 28% of the total $14 billion open interest, will expire “in-the-money,” generating profits for holders. Traders can close these positions or include them in future contracts, which could contribute to market fluctuations.
Ayushman Ojha contributed to this report.
