Bitcoin, suddenly plummeting, have you been liquidated?
In the last 24 hours, the price of Bitcoin has dropped significantly, currently falling below the $97,000 mark, with a decline of nearly 5%. Previously, the price of Bitcoin had returned above the $100,000 mark on January 6.
In addition to Bitcoin, other cryptocurrencies in the market have also seen significant declines. Ethereum and SOL have dropped over 7%, while Dogecoin has fallen nearly 10%.
Due to the drastic price fluctuations, over 170,000 people in the cryptocurrency market have been liquidated in the past 24 hours, with a total liquidation amount of $539 million.
In terms of news, yesterday, the latest data released by the U.S. showed that job vacancies for November 2024 rose to a six-month high, and the December ISM services index grew faster than expected. The new economic data suggests sticky inflation, raising market doubts about the possibility of the Federal Reserve cutting interest rates later this year. After the data release, U.S. Treasury yields soared.
Some market analysts believe that based on on-chain data, the current market leverage is approaching the levels seen at the peak of the 2021 bull market. This high-leverage environment greatly increases the market's vulnerability; once there is any disturbance in the market, investors may quickly withdraw, leading to a price crash and a wave of liquidations.
Throughout 2024, Bitcoin's increase has exceeded 120%. Especially after last November, news of Trump's victory stimulated a rapid rise in Bitcoin, breaking through the $100,000 mark in early December.
However, since mid to late December, affected by profit-taking by investors and expectations that the pace of interest rate cuts by the Federal Reserve will slow down, the price of Bitcoin has fluctuated downward from historical highs, adjusting above $90,000, until it broke through the $100,000 mark again on January 6.
Regarding Bitcoin's previous frenzied performance, Wall Street's top technical strategist Katie Stockton recently issued a warning that Bitcoin's upward momentum has weakened, and there may be sustained selling for several weeks, eventually finding support around $84,500. She also added that if the price of Bitcoin continues to fall, the next support level may be around $73,800.