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

Bitcoin has fallen below $98,000 for the first time since May, resulting in a significant decrease across major cryptocurrencies. In a 24-hour period, over $1 billion in leveraged positions were liquidated, predominantly affecting long positions, resulting in roughly $887 million lost. Notable declines were observed in Ether, XRP, Solana, and Cardano, each dropping by around 8%. Contributing to the market downturn were concerning economic data from China, indicating a sharper slowdown in economic activity, and reduced expectations for a Federal Reserve interest rate cut, which lowered market confidence. As Bitcoin's break below the $98,000 mark prompts new focus on potential support around $94,000, the question arises whether the recent forced liquidations indicate a market reset. Analysts suggest that conditions previously favored rising prices, making current market volatility significant, particularly as crypto often mirrors broader equity market trends.

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