Bitcoin Performance Review: Bitcoin Dropped on Thursday as Its Chart Error Scared Investors

 

Bitcoin retreated on Thursday (Dec. 26), ending two consecutive days of gains. Investors' reaction to a TradingView error and caution over America's tightening macroeconomic policies were the main reasons for Bitcoin's shift.

 

The chart incorrectly showed Bitcoin's share of the total crypto market value was 0%. Although the chart was corrected, the misinformation led to a widespread capital withdrawal from Bitcoin. According to CoinGlass, approximately $33 million in Bitcoin long positions were liquidated within four hours.

 

Another factor in Bitcoin's drop was investor caution about the outlook for speculative assets like cryptocurrencies.

 

Last week, the Federal Reserve signaled fewer interest rate cuts in 2025, causing investors to re-evaluate their positions in speculative assets. So, Bitcoin declined as it could not remove the negative impact of the Fed's hawkish stance.

 

Yet, Bitcoin received support from certain countries. Russian Finance Minister Anton Siluanov said on Wednesday (Dec. 25) that Russia allowed businesses to use Bitcoin and other cryptocurrencies for international payments to offset the impact of Western sanctions. Bitcoin's use in Russia's foreign trade has also been legalized.

 

 

 

 

 

 

The cryptocurrency market can face increased volatility after major Bitcoin options expire on Friday. On Friday (Dec. 27th), 146,000 Bitcoin options contracts worth nearly $14 billion, 44% of all open BTC options, will expire on Deribit. 3.84 billion of ETH options and roughly $4 billion of Bitcoin options will also expire. Traders may close positions or include them in future contracts, potentially enhancing market volatility.