Bitcoin price has dropped to 5 figures after hitting $102,000.
Currently at the time of publication, Bitcoin is trading at $95,000, which represents a decline of about 6% in the last 24 hours, according to CoinGecko data.
Bitcoin had crossed the $102,000 barrier on Tuesday, January 7, after gaining 10% since last week.
However, most of those gains quickly evaporated, leaving the currency within its narrow channel that has been formed since mid-December.
The rapid volatility contributed to a massive liquidation of $695 million in the past 24 hours, with over 235,000 traders suffering losses.
About 90% of long positions have been liquidated, with losses exceeding $300 million in both Bitcoin and Ethereum trading, according to Coinglass.
The largest single liquidation on Binance occurred at $17.7 million on the ETH/USDT pair.
Market sentiment is affected by economic data:
Market sentiment was weighed down by a decline in US stocks such as Nvidia and Tesla, along with the strong dollar.
Many analysts have confirmed that Bitcoin's bullish trend is still intact despite these corrections.
On the other hand, analysts such as Adam Cochran attributed these moves to unexpected US jobs data, which negatively affected expectations of interest rate cuts.
Alternative cryptocurrencies were also negatively affected and suffered significant losses, with the total market capitalization falling to $3.48 trillion.
A note from 10x Research indicates that the strengthening US dollar and rising US bond yields are the main factors pressuring global market liquidity, which has directly impacted Bitcoin prices.
