Why did the cryptocurrency market decline today, January 7, 2024?

The cryptocurrency market witnessed a sharp decline today with Bitcoin falling by more than 5% to reach $96,865. This decline led to the liquidation of positions worth $293 million within hours, with 90% of the liquidations coming from long positions.

The main reason behind this decline is the increase in US Treasury yields which led to inflation fears and a decline in US stocks which in turn affected the cryptocurrency market.