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Just two hours after surging to a four-month high of about $21,550, the price of bitcoin (BTC) has tumbled nearly $1,000, now down 2.6% to $20,600.
More than $107 million was liquidated across crypto derivatives markets during the quick plunge, according to CoinGlass.
Helping to spur the slump were the Department of Justice (DOJ) teasing the announcement of a major international crypto enforcement action to come at noon eastern time. There were also some hawkish comments from Federal Reserve president Jim Bullard, who suggested the central bank should hike 50 basis points at its next meeting in February versus market expectations for just a 25 basis point move.
All three major U.S. stock market indices are also in the red, the Dow Jones Industrial Average leading to the downside with a 1% decline.
Ethereum (ETH) is slumping more than bitcoin, off 4% to $1,511.
Among crypto-related stocks pulling back are Coinbase (COIN), down 4%, Marathon Digital (MARA), down 17%, and MicroStrategy (MSTR), down 11%.
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