Bitcoin Drop Triggers $206M Liquidations In An Hour
Bitcoin price fell to a low of $97,207, losing its bullish trajectory and losing 4%, causing the global cryptocurrency market capitalization to fall by 4.5% to $3.44 trillion.
Liquidations totaled $388 million in the past 24 hours, with more than $206 million occurring in just one hour. Most of these liquidations came from long and short positions on major exchanges.
Additionally, the Bitcoin sell-off also had an impact on altcoins, with Ethereum, XRP, and Solana all losing more than 5% in 24 hours. At the time, Bitcoin was around $97,664, Ethereum was near $3,475, XRP was at $2.32, and Solana was down to $208.
What caused the decline?
Bitcoin’s sudden drop triggered a broader market sell-off in response to the latest macroeconomic data from the United States. According to the latest data Data from the U.S. Bureau of Labor Statistics showed that JOLTS job openings increased by 259,000 to 8.1 million in November 2024, indicating a strong labor market that may limit the Federal Reserve’s interest rate cuts in 2025. This growth occurred in industries such as professional services, finance and healthcare. educate.
“Long story short on why the market is down: Stronger US data has sent bond yields surging. ISM index came in above expectations and JOLTS vacancies increased. Risk asset markets have moved into ‘good data’ ahead of the FOMC announcement in two weeks It’s the bad data phase.” Cryptocurrency analyst Miles Deutscher noted in X postal.
A serious correction is coming?
Additionally, the ISM Services PMI showed that the U.S. economy is resilient. However, the strength stoked concerns about market conditions, sending U.S. stocks lower as economic data suggested the Federal Reserve may keep interest rates steady amid inflation.
Additionally, former BitMEX CEO Arthur Hayes recently shared He made a bold prediction for the cryptocurrency market, saying it could peak in mid-March 2025 and then undergo a severe correction. His forecast is based on declining U.S. dollar liquidity.
