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In summary
- Crypto liquidations reached $1.4B in 24 hours, marking one of the largest events of its kind in recent history, according to Coinglass.
- Bitcoin fell to $92,000, 13.4% below its ATH from three days ago, while altcoins such as Ethereum (-16%), XRP (-18%), and Dogecoin (-26%) suffered even greater losses.
- Jerome Powell’s comments on limited interest rate cuts by 2025 exacerbated the decline in crypto and traditional markets.
Liquidations in the crypto ecosystem have reached $1.4 billion in the last 24 hours, according to data from Coinglass.
Leveraged traders with long positions were left reeling after a sharp drop in the price of Bitcoin and steeper declines among altcoins.
The price of Bitcoin sank to lows of $92,000 on Friday, meaning the world’s largest Cryptocurrency is now 13.4% below its all-time highs set just three days ago.
The situation was even worse among digital assets with lower market capitalization.
Ethereum was down 16% in a 24-hour period at one point, with XRP down 18% and Dogecoin down 26% in the same time frame.
A trader in the Discord Wealth Group cryptocurrency community said he believes that, combining the recent liquidations, “we have probably seen the largest liquidation event in the history of the crypto ecosystem over the last few weeks.”
On Wall Street, data from SoSoValue shows that $680 million flowed out of spot Bitcoin ETFs on Thursday, a record figure not seen since these products launched in January.
The decline in cryptocurrency markets began when Federal Reserve Chairman Jerome Powell suggested that the US central bank could cut interest rates much less frequently in 2025 than initially thought.
There was also plenty of pain inflicted on the stock market, with declines in the tech-heavy S&P 500 and Nasdaq 100 in New York, and the FTSE in London.
Double-digit drops in such a short space of time will be an uncomfortable experience for institutional and retail investors who are new to cryptocurrencies. But some traders have insisted this is a bump on the road to new all-time highs next year.
With pro-cryptocurrency President Donald Trump set to enter the White House in January, and ETFs buying up large amounts of BTC much faster than it can be mined, Bitcoiners argue that there is still plenty of reason to be optimistic.
Edited by Stacy Elliott.
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