Bitcoin drops to near $92,000

Nearly $680 million in net cash flow was withdrawn from Bitcoin ETF funds, causing the coin's market price to evaporate 10% to nearly $92,000.

Bitcoin (BTC) once again lost the $100,000 mark and hovered around the $95,000-$97,000 region throughout this afternoon.

At around 7:10 p.m. (7:10 a.m. local time), BTC suddenly dropped sharply to $92,175 per unit, losing 10% of its value in just 24 hours. Compared to the record on December 17, the world's largest cryptocurrency lost nearly $16,100. Its capitalization also decreased at a similar rate, causing BTC to fall to 8th place in the global ranking of the largest assets.

The market price then improved to the $94,000 region. However, this is still a large gap compared to peak price 106,500 USD 3 days ago

Bitcoin's crash came after the market recorded strong profit-taking by a group of "shark" investors.

According to data from UK-based investment firm Farside Investors, US spot Bitcoin ETFs (a type of fund traded on the stock market, investing mainly in Bitcoin) saw the largest net outflow ever recorded at $679 million. CoinTelegraph assessed this sale as "cleansing".

Experts say the move will help to remove excessive speculation from the market, but long-time market participants fear worse is yet to come.

The Bitcoin logo is placed in front of a chart illustrating a price drop. Photo: CNBC

About $900 million in digital assets were liquidated in 24 hours, according to data from CoinGlass. Changes in US macro policy, as the US Federal Reserve signaled a slowdown in interest rate cuts next year, have cut short a broad-based recovery in risk assets.

Additionally, Fed Chairman Jerome Powell said the agency is “not allowed to own Bitcoin” under the Federal Reserve Act. He stressed that they also have no intention of amending the law to participate in building a digital currency reserve as President-elect Donald Trump has proposed.

“While it is easy to blame the sell-off on the Fed, we believe the root cause of the crash was the market being in an over-hyped state,” the analysts at crypto platform QCP Capital emphasized.

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