Volatility Returns as BTC Falls 7% to $95,000 Amid $700 Million in Liquidations

Bitcoin prices have slipped back into five-figure territory, with the asset hitting an intraday low of $95,164 in early trading in Asia on Wednesday after a nearly 6% drop in 12 hours, according to CoinGecko .

On Tuesday, January 7, the asset topped $102,000 after gaining 10% over the past week. However, most of those gains have now been wiped out.

However, BTC remains within its range channel, which began to form in mid-December when it fell from its all-time high.

Settlements close to 700 million dollars

Over the past 24 hours, more than 235,000 traders went bust, with total liquidations of $695 million, according to Coinglass. About 90% of these were in long positions, with over $300 million liquidated in both BTC and ETH trades.

The largest liquidation order occurred on Binance, with an ETH/USDT position valued at $17.7 million.

“Cryptocurrencies saw a sharp correction due to the drop in US stocks such as Nvidia and Tesla,” derivatives provider Greeks Live commented, adding that market sentiment has turned pessimistic.

He noted that “the overall view is affected by the strong dollar and falling US stocks, the trend of Bitcoin has not changed, the bull market is still there.”

Others have suggested the market nuke was due to hotter-than-expected US jobs data.

The longer-term recovery is partly due to hotter-than-expected job offers, but perhaps the real reason it’s rising is due to the ISM prices paid that also just arrived:

Real: 64.4
Estimated: 57.5
Previous: 58.2

It hasn’t been this high since February 2023, leading the market to wonder if…

— Benjamin Cowen (@intocryptoverse) January 7, 2025

It was a “disgusting reaction to the ISM PMI,” said CEHV partner Adam Cochran, who added:

“This pushed investors over the edge because they no longer expected a high probability of rate cuts.”

In a January 8 note, 10x Research highlighted the importance of macroeconomic data in predicting Bitcoin price movements.

“The strengthening of the US dollar and rising US bond yields have been clear manifestations of these emerging headwinds,” they stated for global liquidity and Bitcoin’s relationship to it.

Altcoin Bloodbath

Total market capitalization is down 7% to $3.53 trillion at the time of writing as altcoins took the brunt of the losses and $225 billion exited the space

Ethereum took a massive hit, falling 8% in a dip below $3,400, where it remains at the time of writing. ETH has now wiped out all the gains of the last five days.

Altcoins are a bloodbath as usual, with double-digit losses for Dogecoin (DOGE), Avalanche (AVAX), Hyperliquid (HYPE), Pepe (PEPE), Near Protocol (NEAR) and Bittensor (TAO).

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