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Why is the Crypto Market Down Today?
$XRP
$SOL
$ETH
The cryptocurrency market experienced a notable decline today after Bitcoin, the leading cryptocurrency, failed to hold onto the critical $100,000 level, following the release of strong US economic data.
Bitcoin Leads the Downturn
The downturn began during the early New York trading hours on January 7, when Bitcoin (BTC) dropped from $100,000 to $95,076, triggered by stronger-than-expected US economic reports that reduced the initial momentum in the crypto market. This caused a ripple effect, and Bitcoin continued to decline, reaching an intra-day low of $95,279 on January 8, marking a 6.35% drop. This sharp fall sparked panic selling across the market, causing widespread losses in other major cryptocurrencies.
Ether (ETH), which had gained over the past week, lost all its gains, dipping as low as $3,300 on January 8, recording a 10% loss in just 24 hours. Other major cryptocurrencies, such as Dogecoin (DOGE), Cardano (ADA), and Solana (SOL), also saw significant losses, with drops of 12%, 11.7%, and 10%, respectively.
Market Correction and Liquidations
The recent drop has led to the liquidation of nearly $631 million in long positions across the crypto derivatives market, signaling the first significant leverage flush of the year. Bitcoin, in particular, saw around $111 million worth of long positions liquidated.
US Economic Data Triggers Risk-Off Sentiment
The broader market decline has mirrored the weakness observed in US equities, where the S&P 500 fell by 1.1% and the Nasdaq composite index lost 375 points. The Dow Jones index also experienced a loss of 0.61%. The stronger-than-expected economic data triggered a risk-off sentiment, erasing over $625 billion in market capitalization from the stock market in a single day. This risk-off mode also impacted the cryptocurrency market, leading to today’s downturn.
#CryptoMarketDown #BitcoinCorrection #CryptoMarketAnalysis
#USEconomicData #MarketVolatility
$SOL
$ETH
The cryptocurrency market experienced a notable decline today after Bitcoin, the leading cryptocurrency, failed to hold onto the critical $100,000 level, following the release of strong US economic data.
Bitcoin Leads the Downturn
The downturn began during the early New York trading hours on January 7, when Bitcoin (BTC) dropped from $100,000 to $95,076, triggered by stronger-than-expected US economic reports that reduced the initial momentum in the crypto market. This caused a ripple effect, and Bitcoin continued to decline, reaching an intra-day low of $95,279 on January 8, marking a 6.35% drop. This sharp fall sparked panic selling across the market, causing widespread losses in other major cryptocurrencies.
Ether (ETH), which had gained over the past week, lost all its gains, dipping as low as $3,300 on January 8, recording a 10% loss in just 24 hours. Other major cryptocurrencies, such as Dogecoin (DOGE), Cardano (ADA), and Solana (SOL), also saw significant losses, with drops of 12%, 11.7%, and 10%, respectively.
Market Correction and Liquidations
The recent drop has led to the liquidation of nearly $631 million in long positions across the crypto derivatives market, signaling the first significant leverage flush of the year. Bitcoin, in particular, saw around $111 million worth of long positions liquidated.
US Economic Data Triggers Risk-Off Sentiment
The broader market decline has mirrored the weakness observed in US equities, where the S&P 500 fell by 1.1% and the Nasdaq composite index lost 375 points. The Dow Jones index also experienced a loss of 0.61%. The stronger-than-expected economic data triggered a risk-off sentiment, erasing over $625 billion in market capitalization from the stock market in a single day. This risk-off mode also impacted the cryptocurrency market, leading to today’s downturn.
#CryptoMarketDown #BitcoinCorrection #CryptoMarketAnalysis
#USEconomicData #MarketVolatility