Bitcoin (BTC) Market Update: Price Falls Below Key Level, Liquidation Amount Reaches $700 Million 🔥🔥🔥

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Comments from the Federal Reserve Chair Cause Bitcoin Plunge

After Federal Reserve Chair Powell stated that the central bank cannot legally hold Bitcoin, Bitcoin fell below $100,000, triggering $700 million in liquidations in the cryptocurrency futures market. Smaller tokens like XRP and DOGE saw particularly significant declines, around 5.5%.

Powell Responds to Trump's Campaign Promise

Powell's comments were a response to Trump's campaign promise regarding Bitcoin as a strategic reserve. He made it clear that under current regulations, the Federal Reserve is not allowed to hold Bitcoin, a statement that dampened market enthusiasm.

Chainlink Leads the Decline

Chainlink's LINK token saw the largest decline of the day, dropping 10%, despite recent profits from acquisitions. BNB and Ethereum fell about 2.5%, showing strong resilience.

Market Reaction and Outlook Analysis

Trading volume surged during the sell-off, indicating active participation from retail and institutional traders. Market analysts have differing opinions; some believe it could be a local top, while others remain optimistic about prospects before 2025. The Federal Reserve hinted at possible interest rate cuts in 2025, but Powell's comments on Bitcoin overshadowed the broader monetary policy outlook.

Technical Analysis and Market Impact

$100,000 is a psychological barrier for Bitcoin, and breaking it triggered selling pressure from trading algorithms and stop-loss orders. Liquidations have a chain reaction affecting leveraged positions across multiple exchanges, impacting long positions. Trading activity in the Asian market is lively as traders assess the impact of Powell's remarks.

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