Bitcoin faced a significant slump, leading to over $700 million in liquidations across futures linked to major cryptocurrencies, including XRP and Dogecoin. BTC dropped below $100,000, partially recovering as the Asian Market opened. This decline followed remarks from Federal Reserve Chair Jerome Powell, who indicated that current regulations prevent the Fed from owning Bitcoin. His comments triggered a 3% drop for BTC and hefty losses for other cryptocurrencies, notably Chainlink, which saw a 10% drop. While some analysts suggest this downturn may signal a Market peak, others remain optimistic, believing that a positive crypto Market is still possible in the coming year, especially with potential changes under a future Trump administration.
Bitcoin’s Market Meltdown: Over $700 Million Liquidated in Recent Slump
A recent slump in Bitcoin prices has triggered a significant reaction in the cryptocurrency Market, leading to over $700 million in liquidations across futures tied to major tokens. This downturn particularly affected XRP and Dogecoin (DOGE), among other cryptocurrencies.
Bitcoin (BTC) dropped below $100,000 during late U.S. trading hours before recovering slightly in early Asian markets on Thursday. The Federal Reserve’s hints at potential rate cuts in 2025 contributed to the volatility. Fed Chair Jerome Powell remarked that the central bank is not permitted to own Bitcoin under current laws, which came up during discussions about President-elect Donald Trump’s promised strategic reserve of Bitcoin.
After Powell’s comments, Bitcoin saw a 3% drop, intensifying the Market decline. Major tokens like XRP and DOGE fell as much as 5.5%, while Solana’s SOL, BNB Chain’s BNB, and Ether (ETH) faced declines as well. Chainlink’s LINK recorded the most significant loss, sinking 10% and erasing earlier gains.
This Market shift led to a cascade of liquidations, with many bullish positions being forcefully closed by exchanges due to traders not meeting margin requirements. Uniquely, smaller altcoins and meme tokens faced more severe losses than Bitcoin and Ethereum futures during this dip.
The sharp decline raises questions about the Market‘s direction. Some analysts believe that Powell’s statements may indicate a peak for Bitcoin’s recent rally, which was fueled by optimism around U.S. government involvement in cryptocurrency. Yet, traders from QCP Capital remain optimistic about the future, suggesting that holding positions could be beneficial, especially with the potential for a new bullish trend in the coming year.
In summary, while the Market reaction has been significant, many traders are encouraged to look beyond the immediate downturn, maintaining a longer-term perspective as the landscape of cryptocurrency continues to evolve.
Tags: Bitcoin liquidations, cryptocurrency Market, XRP, Dogecoin, Fed interest rates
What happened with Bitcoin and Trump’s plans?
Recently, many people lost money in Bitcoin trading. It seems that Donald Trump’s plans regarding Bitcoin caused some worry in the Market, leading to a lot of liquidations.
What are liquidations in the crypto world?
Liquidations happen when a trader loses more money than they have in their account. The trading platform then sells their assets to cover the losses. This can lead to big drops in prices.
Why did the Market react negatively to Trump’s Bitcoin plans?
Trump’s plans brought uncertainty and confusion to investors. When there’s uncertainty, people often sell their assets, which can cause prices to fall sharply.
How much money was lost due to liquidations?
Recent reports show that around $700 million was lost from liquidations in the crypto Market due to this situation. This is a significant amount and reflects traders’ panic.
Is this a common occurrence in crypto trading?
Yes, large liquidations can happen in crypto trading, especially during times of news or events that cause volatility. It’s important for traders to be aware of the risks involved.
