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

Bitcoin fell below $98,000 for the first time since May, triggering a significant decline in major cryptocurrencies, with Ether and Solana also seeing drops over 8%. Over $1 billion in leveraged crypto positions were liquidated in just 24 hours, with about $887 million stemming from long positions. The market slump was exacerbated by disappointing economic data from China, including lower-than-expected industrial production and fixed-asset investment numbers, which negatively impacted Asian equities and, subsequently, the crypto market. The loss of the $98,000 threshold for Bitcoin puts focus on potential support around $94,000, while lack of certainty around future Federal Reserve interest rate cuts adds to market volatility. The forced liquidation of positions may have reset the market but raises questions about further declines if equities continue to falter, marking a critical moment for traders.

Source 🔗