HargaRumah: Bitcoin Plunges Toward $95K, Liquidating More Than $700 Million in a Day

Kamis, 09 Januari 2025

Bitcoin Plunges Toward $95K, Liquidating More Than $700 Million in a Day


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Bitcoin Plunges Toward $93K, Liquidating More Than $700 Million in a Day

We spoke too soon, fellas!

Bitcoin dropped to around $93,000 at the time of this writing.

Anyway, how did this affect the market? Well, somewhat predictably—as always, when Bitcoin dumps, altcoins also take a hit.

Over the past 24 hours, everything is down significantly—Ethereum by about 10%, XRP by around 6.7%, Solana by about 10%, Dogecoin by 12%, and so on.

At the moment, the total value of liquidated positions in derivative markets is nearly $700 million, and the market capitalization has dropped by approximately $300 million. It's an absolute bloodbath—hopefully, you didn't overdo it with leverage.

But why did this happen? In Monday's newsletter, we mentioned that a report on the state of the U.S. labor market was expected yesterday, and we explained that this information is used by investors to position themselves. Well, the data didn't meet expectations. It turns out that the labor market in the U.S. is slowing down—the number of job openings has increased, while at the same time, fewer people are leaving their jobs.

Although the Federal Reserve chair tried to reassure the markets, stating that this decline is gradual and within norms, investors took a more cautious stance, and the drop wasn't limited to crypto. The S&P 500 is down by over a percent, the NASDAQ Composite is down by almost two percent, and many stocks also saw declines.

So, even though many people are expecting a serious bull run in 2025, this by no means excludes such short-term drops (hopefully, they are short-term), and it's very important to remain cautious and steer clear of high-leverage positions so as not to become part of the statistics!

Price Action

Total Mkt Cap: $3.37 Trillion | 24HR Liquidations: $700M | Sentiment: Greed

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Bitcoin

After a relatively quiet weekend, which BTC spent mostly at around $98,000, the cryptocurrency went on the offensive on Monday. Within just a few hours, its price skyrocketed from under $99,000 to a multi-week peak of $102,400.

This was the first time the asset exceeded the $100,000 mark since the start of the year. It kept climbing during the Tuesday Asian trading session and peaked at $102,800 (on Bitstamp).

However, it quickly started to lose value as the day progressed. Once the US trading hours kicked in and some controversial data came out, BTC started to freefall and dumped by five grand in about 60 minutes. It kept dropping in the following hours and plunged to $95,200 earlier this morning, leaving roughly $700 million in liquidations.

Since then, the cryptocurrency has continued declining, reaching prices lower than $93,000.

Altcoins

As it typically happens during such violent corrections, most altcoins have it worse. Ethereum is among the poorest performers, having dumped by 8% from over $3,600 to under $3,400. Even more painful declines come from SOL, DOGE, ADA, AVAX, SUI, LINK, HBAR, DOT, and SHIB, as most of them have dumped by double digits.

XRP and BNB have dropped by a more modest 4.5% and 3.2%, respectively, while LEO is the only larger-cap alt that is not deep in the red.

The total crypto market cap went from $3.760 trillion yesterday to under $3.4 trillion today, losing roughly $400 billion in the process from top to bottom.

Best Performers

Fasttoken (FTN) +0.3%
First Digital USD (FDUSD) +0.3%
Mantra (OM) +0.2%

Worst Performers

Movement (MOVE) -15%
Worldcoin (WLD) -14.8%
ai16z (ai16z) -14.2%

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