Crypto Market Loses $100 Billion: Experts Call it a Correction

The crypto market recently lost a whopping $100 billion in market value, dropping from $1.82 trillion to $1.71 trillion. Despite this, experts believe this drop has become a normal fluctuation for the digital market.

These market dips are common, especially since it's a market that's heavily leveraged (using borrowed money to invest). Before this drop, funding rates and open interest (contracts that are still open) in crypto derivatives (financial contracts) had already been decreasing.

A Crypto Technical analyst ‘CrediBULL Crypto’ noted that liquidations like this happen regularly and are not a sign of an overheated market. He called it a 'normal' market correction.

Data from Coinglass shows that about $700 million were liquidated, mostly long positions (bets on price increases). Bitcoin was affected the most. Technical analyst Willy Woo commented “Long demand in the system is getting frothy.”

Some believe the drop was influenced by a statement from Matrixport, where they predicted that the SEC won't approve any Bitcoin ETFs this week. Despite this, experts are staying optimistic for an approval on Jan 10, the deadline for the Ark 21 Shares ETP. A rejection could see Bitcoin prices fall to the $30,000 range.

The crypto market has stabilized, with Bitcoin and Ethereum trading at $43,197 and $2,291 respectively.