The cryptocurrency market has recently experienced a significant downturn, with Bitcoin's value dropping below the $100,000 threshold, reaching approximately $96,680—a decline of nearly 3.5% over the past 24 hours. This decline is part of a broader market correction that began on January 7, 2025, during early New York trading hours, when Bitcoin lost the $100,000 level.
The global cryptocurrency market capitalization has decreased by 6.41%, falling from $3.59 trillion to $3.36 trillion, reflecting widespread losses across various digital assets. Analysts attribute this downturn to stronger-than-expected U.S. labor market data, which has reduced the likelihood of Federal Reserve interest rate cuts. This situation has led to concerns among investors about a potential resurgence of inflation similar to that of the 1970s.
Other cryptocurrencies have also been affected, with Ethereum experiencing a decline of 8% and Solana over 7% within the same timeframe. Additionally, crypto-related stocks have suffered, including MicroStrategy, Coinbase Global, and Marathon Holdings, which dropped 10%, 8%, and 7% respectively. Despite these declines, there have been substantial inflows into Bitcoin and Ethereum exchange-traded funds, signaling continued investor interest in the cryptocurrency market.