#Bearish #marketupdate

The crypto market crash on December 9, 2024 was caused by 4 MAJOR converging factors:

1. Excessive Leverage and Liquidation:

Over $1.7 billion in leveraged positions were liquidated in 24 hours, Bitcoin dropped below $94,000, and Ethereum dropped 8%. This created a domino effect in the market as long and short positions were forced to close, further exacerbating the sell-off.

2. Quantum Computing Fears:

Google’s announcement of its advanced quantum chip “Willow” has raised concerns about potential threats to the security of cryptocurrencies. While not a pressing issue, some traders speculate about vulnerabilities in cryptographic defenses, causing uncertainty in the market.

3. Government Bitcoin Sell-off:

The government of Bhutan has moved a large amount of Bitcoin to exchanges, sparking fears of an increase in supply and further price decline. This mirrors the previous move that depressed Bitcoin prices.

4. Broad Market Trend:

The broader market correction associated with the pre-halving cycle also played a role. Historically, Bitcoin has gone through a pullback and re-accumulation phase before halvings, and this is consistent with the pattern seen in the decline.

These factors combined to create a perfect storm, leading to the sharp decline.$BTC $ETH $XRP