Crypto News

Crypto Market Volatility Returns as Bitcoin Drops Below $100K, Altcoins Follow Suit

Bitcoin's price has fallen back into the five-digit range after briefly reaching $102,000.

As of press time, Bitcoin is trading at $95,000, marking a nearly 6% decline in the past 24 hours, according to data from CoinGecko.

The cryptocurrency had crossed the $102,000 mark on Tuesday, January 7, following a 10% gain since last week.

However, much of those gains quickly evaporated, leaving Bitcoin stuck within the narrow channel it has been trading in since mid-December.

The sudden volatility triggered a massive $695 million liquidation in the past 24 hours, affecting more than 235,000 traders.

Approximately 90% of long positions were liquidated, with losses exceeding $300 million in both Bitcoin and Ethereum trades, according to Coinglass.

The largest single liquidation occurred on Binance, involving $17.7 million in the ETH/USDT pair.

Market Sentiment Impacted by Economic Data

Market sentiment has been further dampened by a decline in U.S. stocks such as Nvidia and Tesla, as well as a strengthening U.S. dollar.

Despite these corrections, many analysts believe Bitcoin's overall uptrend remains intact. However, analysts like Adam Cochrane attribute the recent moves to unexpected U.S. jobs data, which has negatively impacted expectations of an interest rate cut.

Altcoins have also been hit hard, experiencing significant losses as the total cryptocurrency market capitalization dropped to $3.48 trillion.

According to a note from 10x Research, the strengthening U.S. dollar and rising bond yields are key factors squeezing global market liquidity, directly affecting Bitcoin prices.