Crypto Market Flushes $692M as Bitcoin Gets Shot Down From $100K

• Over the past 24 hours, the crypto market saw $692 million in liquidations, with Bitcoin and Ethereum leading the losses.
• Altcoins, including Solana, Dogecoin, and Cardano, also experienced sharp declines.
• Bitcoin fell below $100,000 due to broader market pressures, including inflation concerns and rising Treasury yields.

The cryptocurrency market experienced significant volatility over the past 24 hours, with $692 million in liquidations.

Bitcoin (BTC) and Ethereum (ETH) took the brunt of the hit, but altcoins like Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) weren’t spared either, each suffering significant losses.

The sudden wave of sell-offs can be traced back to broader economic pressures, including rising Treasury yields and inflation concerns.

Over $600M in Liquidations

Bitcoin’s price dropped by 6%, contributing to $104 million in liquidations.

Despite its dominant position, Bitcoin’s pullback was relatively modest compared to ETH, which saw a 9.5% drop and $130 million in liquidations—making it the hardest-hit asset in the past 24 hours.

SOL followed closely with a 10% drop and $32 million in liquidations.

DOGE and ADA were similarly impacted, each facing price losses exceeding 11%, leading to $22.2 million and $8.5 million in liquidations, respectively.

Sui (SUI) also felt the pressure, experiencing a 10% decline and $7.96 million in liquidations. Binance Coin (BNB) saw a 6.2% drop, resulting in $1.9 million in liquidations.

Crypto Stocks Slip

Crypto stocks weren’t spared from the market chaos.

Coinbase (COIN) and MicroStrategy (MSTR) dropped by over 8% and 9%, respectively, while Bitcoin mining companies like MARA and Core Scientific saw declines of about 7% and 6%.

Just a day earlier, crypto stocks had rallied, posting double-digit gains after weeks of moving sideways.

Macro Data Contributes to Bitcoin’s Decline

The pullback in Bitcoin’s price was partly triggered by macroeconomic data.

A report from the Institute for Supply Management (ISM) revealed  stronger-than-expected growth in the U.S. services sector for December, including a measure of prices paid that hit its highest level since early 2023.

This raised concerns about inflation and economic overheating.

Additionally, a $39 billion Treasury auction pushed the 10-year yield to its highest level since May, further intensifying market pressure.

Analysts  pointed out that the ISM data sparked a selloff in equities, which spilled over into the crypto market, given its increasing correlation with the Nasdaq.

The selloff was further exacerbated by profit-taking and stop-loss triggers on newly opened crypto positions above the $100,000 mark, adding to the downward pressure on prices.