Bitcoin Drops Another 10%... Struggling Amid Nonstop Holiday Trading

Ethereum Falls Below $2000

[Asia Economy New York=Correspondent Baek Jong-min] The cryptocurrency Bitcoin fell more than 10% over the weekend, trading around the $32,000 level. Bitcoin is showing signs of deepening losses again after experiencing a crash and rebound last week.

[Image source=Reuters Yonhap News]

On Sunday morning, the 23rd (local time), Bitcoin is testing whether it can hold the $33,000 support level.

Bitcoin was around the $35,000 level at about 8:30 a.m., but by 9:30 a.m., it had dropped into the $32,000 range. The decline rate reached 13%. Bitcoin's value has shrunk to about half compared to its all-time high of $65,000 recorded on April 14.

On the 19th, Bitcoin plunged to $30,000, down 30%, amid what is speculated to be a large volume of leveraged trade liquidations. Bitcoin then climbed back up to $40,000, seemingly stabilizing, but it is now showing signs of further decline.

After the crash on the 19th, despite statements from Chinese authorities targeting Bitcoin mining and trading, the U.S. Treasury Department's mandate to report cryptocurrency transactions over $10,000, and the Federal Reserve's announcement of plans to research a digital dollar, Bitcoin maintained the $37,000 to $38,000 range. However, as selling pressure increased over the weekend, it appears unable to avoid weakness.

Ethereum, the second-largest cryptocurrency by market capitalization, also fell by 15%, trading around $1,930. This is the first time in over two months that Ethereum has dropped below $2,000.

Dogecoin, supported by Tesla CEO Elon Musk, also fell 13%, trading at 29 cents. Dogecoin had plunged to 23 cents during the crash on the 19th.

Amy Wu Silverman, an analyst at RBC Capital Markets, said, "Many are surprised by Bitcoin's volatility."

Vander Research, which analyzes Bitcoin trading, cited the sharp decline in Bitcoin and Ethereum futures open interest as an example, stating, "As the (cryptocurrency) bubble begins to burst, it seems individual investors are pulling out of Bitcoin investments."