What Happened in Crypto Today: Why is Crypto Falling After Highs

What Happened in Crypto Today: Why is Crypto Falling After New Highs?

Bitcoin Realized Profit Drops 76%, Signaling More Stable Price Declines

Bitcoin’s realized profit has dramatically decreased by 76% after its price surged past $100,000. On December 5, Bitcoin briefly reached $103,493 before dropping to under $93,000 within 24 hours, causing $303.5 million in liquidations. Despite this volatility, the reduced sell-side pressure may lead to less abrupt future price declines. 

The realized profit, which peaked at $10.5 billion daily, has fallen to about $2.5 billion. Analysts like James Check from Glassnode’s Bitcoin price prediction remain cautious, noting that sell-side pressure from current holders continues to outpace institutional demand, which could keep Bitcoin's price under pressure.

Dogecoin, XRP, and Solana Lead Declines: Why Crypto is Down Today?

Bitcoin has dropped below $97,000 after briefly surpassing $100,000, currently priced at $97,612.84. This decline has affected other cryptocurrencies, with Dogecoin down 8% to $0.4112, XRP falling 15% to $2.23, and Solana dropping 6% to just under $216.73. Ethereum also saw a 7% drop to $3,753.14. 

Over $1.71 billion has been liquidated across the market, impacting over half a million traders. Despite the downturn, institutional interest remains evident, with significant Bitcoin outflows from Coinbase suggesting ongoing accumulation by large-scale players.

XRP Faces Uncertainty Amidst SEC Appeal and Regulatory Challenges

Ripple’s XRP is facing uncertainty as the December 11 Senate Banking Committee vote approaches. Ripple CEO Brad Garlinghouse criticized 60 Minutes for omitting a landmark ruling that declared XRP “not a security,” sparking debates within the crypto community. The SEC’s January 15 decision on whether to pursue its appeal against Ripple adds further uncertainty. 

XRP price closed at $2.2176 on December 9, following a 14.86% drop. Analysts predict that a favorable ruling could see XRP surpass its all-time high of $3.55, while prolonged regulatory battles could continue to impact its price negatively.

Shiba Inu Coin Price Doubles as SHIB Burn Rate Surges 1000%

Shiba Inu coin has caught market attention again, with its burn rate soaring by 1000%, removing 51.76 million tokens from circulation. This significant reduction in supply has turned market sentiment bullish, despite SHIB slipping by 15% intraday. 

Shibarium, Shiba Inu’s layer-2 network, has seen increased activity, boasting 2 million registered wallet addresses, contributing to a bullish market outlook. Weekly burn data indicates the removal of 2.44 billion tokens, reducing the total market supply to 589.25 trillion.

MicroStrategy Continues Bitcoin Accumulation Despite Market Downturn

MicroStrategy recently acquired an additional 21,550 bitcoins for $2.1 billion, despite the market downturn. This purchase, at an average price of $98,783 per bitcoin, brings their total holdings to around 423,650 bitcoins. 

CEO Michael Saylor remains committed to Bitcoin as a long-term store of value, seeing it as a hedge against inflation and currency devaluation. Despite Bitcoin’s recent price fluctuations, Saylor believes in Bitcoin's long-term potential, underscoring his strategy of continuous accumulation regardless of market conditions.

Conclusion

Despite recent market volatility and regulatory challenges, the overall sentiment towards Bitcoin and other cryptocurrencies remains bullish, driven by ongoing institutional interest, strategic accumulations, and significant token burn rates contributing to a more optimistic outlook.