Cryptos On Dec 29: Bitcoin Slumps Further As Altcoins Crash

Bitcoin failed to break above $53,000, which is a level that every investor was eyeing to see how strong the popular cryptocurrency's rally was. Bitcoin was at $47,959.46 as of 1:45 a.m. ET. The bullish sentiment that began from the 'Santa rally' seems to have subsided.

The exact reason for the sudden onset of this bearish sentiment is hard to decipher. The CEO of Real Vision, Raoul Paul, mentioned in a recent tweet that the reason for this drop in prices is institutional investors cashing in on their year-end profits, by selling Bitcoin.

In his recent interview with Vlad from TheStakeborg YouTube channel, Paul said that Bitcoin is falling because of institutional investors.

The daily candle for Bitcoin on Tuesday fell by more than 6%. The candle opened at 50,701, peaked at $50,704, and fell as low as $47,313. The daily candle for Wednesday had opened at $47,543 and reached a high of $48,139, but was unable to push through.

The market dominance for Bitcoin dropped below 40%, Peter Schiff, the chief economist of Euro Pacific Capital, pointed out in a tweet.

Bitcoin is now nearly 30% below its all-time high made in November. Altcoins too have turned bearish, dropping in double digits. Major gainers Terra (LUNA), Solana (SOL) and Cardano (ADA) also turned bearish. Ethereum fell below $4,000, and was trading at $3,795.85.

LUNA fell to a low of $83.67 in the previous 24 hours, from a high of around $92. ADA fell to a low of $1.38 from a high of $1.54.

Data from CoinMarketCap shows that meme coins, too, have turned bearish, with Dogecoin (DOGE) dropping more than 3% in the last 24 hours and ranking at #12. DOGE Rival Shiba Inu (SHIB) is down by more than 3% in the last 24 hours, ranking at #13.