Hold onto your hats, crypto enthusiasts! The rollercoaster ride is back, and Bitcoin's leading the charge downhill, leaving thousands of traders in its wake.
Bitcoin's price has taken a nosedive, crashing back into the five-figure zone. Early Wednesday in Asia, it hit a low of $95,164 after tumbling nearly 6% in just 12 hours. Not too long ago, on Tuesday, Bitcoin was rocking at $102,000, boasting a 10% gain over the week. But alas, those gains have now vanished like a ghost in the night.
Despite the turbulence, Bitcoin is still dancing within its mid-December channel, which began after it dropped from its all-time high.
In the past day, more than 235,000 traders found themselves in hot water, with liquidations totaling a whopping $695 million. A staggering 90% of those were in long positions, with BTC and ETH trades seeing over $300 million in liquidations. The biggest single blow? A $17.7 million ETH/USDT position on Binance.
Crypto's wild streak seems to have been ignited by plummeting US stocks, including heavyweights like Nvidia and Tesla. Market sentiment has taken a pessimistic turn, according to derivatives provider Greeks Live. They believe the strong dollar and declining US stocks are influencing the market, but the Bitcoin bull market remains intact.
Some are pointing fingers at hotter-than-expected US jobs data as the spark for the market meltdown. The ISM prices paid index also surged unexpectedly, causing quite the stir.
Economics guru Adam Cochran described it as a “nasty reaction to the ISM PMI,” suggesting it pushed investors to rethink the likelihood of future rate cuts.
In a recent note, 10x Research highlighted the critical role of macroeconomic data in forecasting Bitcoin's price movements. They pointed out that a stronger US dollar and rising bond yields are creating headwinds for global liquidity and Bitcoin alike.
The total market cap has taken a 7% hit, dropping to $3.53 trillion, as the altcoins bore the brunt of the losses, with $225 billion vanishing from the space.
Ethereum wasn't spared either, suffering an 8% plunge below $3,400, erasing all its gains from the past five days. As usual, the altcoins are in a bloodbath, with double-digit losses for Dogecoin, Avalanche, Hyperliquid, Pepe, Near Protocol, and Bittensor. Buckle up, folks; the crypto world is as unpredictable as ever!
