Bitcoin Falls Below $100K; $1.3 Billion in Liquidations Recorded
The cryptocurrency market is undergoing significant volatility, with Bitcoin recently falling below the $100,000 threshold. This marks the first time in six months that Bitcoin has dipped into six figures, affecting investor sentiment and liquidations across the board.
Bitcoin Price Dynamics
On Tuesday, Bitcoin’s price reached a low of $99,954 on Coinbase and $99,990 according to CoinMarketCap. As of now, Bitcoin has rebounded slightly, trading above $101,000, though it remains down more than 5% over the past 24 hours. This drop represents a decline of approximately 12% in the past week and over 20% since its all-time high of above $126,000 in early October.
Reasons Behind the Decline
The latest plunge follows significant liquidations in the market, with $1.3 billion recorded over the past day. This event is a part of a broader trend where many investors are moving to stablecoins, reflecting caution in the current market environment.
Market Overview and Liquidation Details
- Liquidation Amount: $1.3 billion in total.
- Bitcoin’s Contribution: Approximately $470 million in liquidated positions.
- Major Contributors:
- Ethereum: ~$377 million
- XRP: $2.17 (down 7.5%)
- Solana: Drops to $154 (down 8%)
- Dogecoin: Falls to $0.157 (down about 7%)
Future Outlook
Despite current challenges, some industry experts remain optimistic. Vladislav Ginzburg, CEO of OneSource, believes the market is stabilizing after profit-taking above $115,000. He’s anticipating continued demand from institutional buyers in the coming quarter, which could drive prices closer to past highs.
In light of the ongoing market turbulence, investors appear cautious as they navigate liquidity issues and broader economic uncertainties, including the longest government shutdown in U.S. history and the speculation around interest rate adjustments.
For daily updates and insights into the cryptocurrency market, stay tuned to El-Balad.
