The crypto market experienced a significant decline on Wednesday, January 8, 2025, triggered by stronger-than-expected US economic data, raising concerns that the Federal Reserve will slow the pace of interest rate cuts this year.
Ethereum (ETH) also experienced a sharp decline, falling about 8% to $3,354.52.
According to data from CoinMarketCap, this decline occurred after Bitcoin briefly broke through the $100,000 level, but fell again due to profit-taking and concerns over US monetary policy.
In addition, data from Coinglass shows that about $400 million in leveraged crypto positions have been liquidated, which contributed to the price decline.
Rising US bond yields and strong labor market data added pressure on riskier assets such as crypto.
Crypto-related stocks, such as MicroStrategy and Marathon Digital, also experienced sharp declines amid the market volatility.
However, some altcoins such as Bitget Token (BGB) managed to record gains, indicating that investors are still looking for opportunities in this volatile market.
Analysts advise investors to remain vigilant about market volatility and pay attention to monetary policy developments and economic data that could affect future crypto asset price movements.