Bitcoin Plunges Under $98,000, $880 Million in Liquidations

Bitcoin dropped below $98,000 for the first time since May, contributing to a significant decline across major cryptocurrencies. In just 24 hours, over $1 billion in leveraged crypto positions were liquidated, with the largest single liquidation being a $44 million BTC long. This downturn was exacerbated by weaker-than-expected economic data from China, which reported a slowdown in industrial production and a historic contraction in fixed-asset investment. The market's reaction mirrored that of equities in Asia, where stocks fell in response to the economic news. Despite hopes for a December Federal Reserve rate cut, optimism waned, with markets now pricing the odds at less than 50%. Traders unwound leveraged bets, with Bitcoin's decline dragging altcoins like Ethereum, Solana, and Cardano down by over 8%. The market focus has now shifted towards potential support levels, particularly near $94,000 for Bitcoin, amidst a broader context of volatile macroeconomic conditions and increasing investor caution.

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