BTC plunges 7% to $95,000, $700 million liquidated, volatility picks up

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Bitcoin (BTC) plunged nearly 6% in the past 12 hours, hitting an intraday low of $95,164 in early Asian trading on Wednesday, falling back into the five-digit range. On January 7, BTC broke through $102,000 after rising 10% in the past week, but most of the gains have been erased.

Despite this, Bitcoin remains within a range-bound channel that has formed since the pullback from its all-time high in mid-December.

$700 million liquidated, market sentiment pessimistic

According to Coinglass, more than 235,000 traders were liquidated in the past 24 hours, with a total liquidation amount of $695 million, of which about 90% were long positions. The transaction liquidation amount of BTC and ETH exceeded $300 million. The largest single liquidation occurred on Binance, with ETH/USDT positions worth $17.7 million.

Derivatives provider Greeks Live believes that the cryptocurrency pullback is related to the plunge in US stocks (such as Nvidia and Tesla), and market sentiment has become more pessimistic. They said: "The strengthening of the US dollar and the decline in US stocks have affected the mainstream view, but despite this, the bull trend of Bitcoin remains."

On the other hand, CEHV partner Adam Cochran believes that the market crash stems from stronger-than-expected US employment data, which has made investors no longer expect the Federal Reserve to continue to cut interest rates.

Altcoins suffered heavy losses, with the total market value falling by 7%

Altcoins suffered even greater losses, and the entire cryptocurrency market capitalization has fallen by 7% to $3.53 trillion. Ethereum (ETH) fell below $3,400, a drop of 8%, and wiped out all gains in the past five days.

Many altcoins also suffered heavy losses, such as Dogecoin (DOGE), Avalanche (AVAX), Hyperliquid (HYPE), Pepe (PEPE), Near Protocol (NEAR) and Bittensor (TAO), all of which experienced double-digit declines.

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