$480 Million Wiped Out in 24 Hours
In the past 24 hours, more than 157,000 traders faced liquidation, with a total value of more than $480 million.
According to data from Coinglass, approximately $400 million in leveraged cryptocurrency positions were wiped out. As a result, Bitcoin price fell by more than 5% after rising for seven days in a row.
Sudden cryptocurrency liquidation triggers market correction
The broader cryptocurrency market cap fell 7%, with Ethereum drops Nearly 8%. largest order liquidation Happened on Binance.
The reckoning coincided with a sudden rise in U.S. 10-year Treasury yields. data Data from the Institute for Supply Management showed stronger-than-expected growth in the U.S. services sector in December.
this intensifies Concerns about continued inflation. Higher yields tend to put pressure on growth-oriented risk assets, including cryptocurrencies.
Additionally, open interest levels also Contributed to a wave of reckoning. Bitcoin and Ethereum have both lost over $1 billion since yesterday open interestsignaling significant market deleveraging.
“Since yesterday’s local high, BTC’s open interest has evaporated by approximately $1.6 billion. ETH’s open interest has also been wiped out by approximately $1 billion as a result. It will be interesting to see how this plays out in the short term. Interesting. The overall market is still volatile, which is usually the case at the end of the year and the beginning of the year,” popular trader and influencer Daan release on X (formerly Twitter).
Some analysts noted that today’s cryptocurrency liquidation suggests that Bitcoin’s price will fall below the $93,000 support and enter a bearish cycle.
“Bitcoin is repeating its 8-year resistance pattern. Every rejection of this trendline will result in a massive crash. Expect a massive crash and history is repeating itself. My 2025 #BTC target is below $30,000,” Jacob King wrote on X (formerly Twitter).
However, most analysts remain bullish on Bitcoin’s prospects. For example, Rekt Capital predict The reckoning marks the beginning of a new four-year cycle.
According to its predictions, prices could experience a parabolic rise ahead of an expected bear market in 2026.
Economic data and the impact of Fed policy
U.S. labor market data may also have an impact on today’s market fluctuations. The JOLT Job Openings Report shows there were 8.098 million job openings in November. That beat the forecast of 7.7 million.
A strong labor market may prompt Fed Keep interest rates higher for longer than expected. This means risk assets such as cryptocurrencies are under greater pressure.
The Fed recently hinted at a third rate cut, but suggested a smaller cut in 2025. Historically, rate cuts have been beneficial to Bitcoin prices, while rate increases have had the opposite effect.
Meanwhile, today’s market liquidation affected cryptocurrency-related stocks. MicroStrategy’s stock (MSTR) fell 10%, reflecting the broader market downturn.
The company has been Actively buy Bitcoin throughout 2024, even making it Buy BTC for the first time in 2025 yesterday. Marathon Digital Holdings Inc. (MARA) largest bitcoin minersits share price also fell 5%.
However, not all assets are affected by today’s economic downturn. Despite widespread cryptocurrency liquidation, Bitget Token (BGB) Go against the trend. The altcoin gained over 4% today, bringing its January gains to over 10%.
Disclaimer
follow trust project BeInCrypto is committed to fair and transparent reporting. This news article is designed to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on the content of this article. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
