Bitcoin has dropped below $100,000 for the first time since early May 2024, falling to as low as $99,954 amid a broader market decline. This plunge has triggered $1.3 billion in liquidations, with Ethereum, XRP, and Solana experiencing even steeper losses of up to 10%. The cryptocurrency’s value is down 6% in the last day, signaling heightened volatility in the sector.
-
Bitcoin’s price fell below $100,000, reaching a low of $99,954 on Coinbase.
-
Ethereum dropped nearly 10% to below $3,300, while XRP declined 7.5% to $2.17.
-
The market saw $1.3 billion in liquidations over 24 hours, per CoinGlass data, mostly from long positions betting on price rises.
Bitcoin drops below $100,000 for the first time in six months, sparking $1.3B liquidations. Explore impacts on Ethereum, XRP & more in this crypto market update. Stay informed on volatility—read now!
What Caused Bitcoin to Drop Below $100,000?
Bitcoin’s price drop below $100,000 stems from intensified selling pressure following its all-time high above $126,000 in early October 2024. The cryptocurrency traded as low as $99,954 on Coinbase and $99,990 according to CoinMarketCap before a slight rebound to around $100,906, marking a nearly 6% decline in the past day. Over the past week, Bitcoin has fallen 12%, and 18% over the month, reflecting broader market corrections after a prolonged rally.
How Are Other Cryptocurrencies Affected by Bitcoin’s Decline?
The ripple effects of Bitcoin’s price drop have hit alternative coins harder, amplifying losses across the sector. Ethereum saw a nearly 10% daily plunge to below $3,300, driven by correlated market sentiment and leveraged positions unwinding. XRP followed with a 7.5% drop to $2.17, while Solana declined 8% to $154 and Dogecoin fell about 7% to $0.157, according to price trackers like CoinMarketCap.
These movements underscore the interconnected nature of crypto assets, where Bitcoin often sets the tone for altcoins. Data from CoinGlass indicates that over $1.3 billion in positions were liquidated in the last 24 hours, surpassing the $1.1 billion seen earlier in the week. Of this total, more than $1.1 billion came from long positions—bets anticipating price increases—that were forced to close as values tumbled.
Bitcoin led the liquidation surge with $470 million wiped out, followed closely by Ethereum at approximately $377 million. This level of activity highlights the risks of high leverage in volatile markets, as noted by financial analysts monitoring on-chain data. Just a day prior, when Bitcoin hovered around $107,000, market sentiment was divided, with predictions split between a potential rise to $120,000 and a fall to $100,000. However, the odds shifted dramatically as the downturn accelerated.
Frequently Asked Questions
What Triggered the Recent $1.3 Billion in Crypto Liquidations?
The $1.3 billion in liquidations over the past 24 hours, as reported by CoinGlass, resulted primarily from Bitcoin’s sharp decline below $100,000, forcing the closure of overleveraged long positions. This event outpaced previous daily losses of $1.1 billion, with Bitcoin accounting for $470 million and Ethereum $377 million of the total, reflecting widespread margin calls in a correcting market.
Is the Crypto Bull Run Ending After Bitcoin’s Drop Below $100,000?
Bitcoin’s fall below $100,000 marks its first sub-six-figure price since early May 2024, following a peak above $126,000 in early October, but market cycles in cryptocurrency remain unpredictable. While the 18% monthly decline signals a correction, historical patterns show bull runs often feature such pullbacks before resuming upward trends, according to data from sources like CoinMarketCap.
Key Takeaways
- Bitcoin’s Volatility Persists: The cryptocurrency’s drop to $99,954 highlights ongoing price swings, down 12% weekly after a strong rally.
- Altcoins Amplify Losses: Ethereum’s 10% decline to under $3,300 and similar drops in XRP and Solana demonstrate Bitcoin’s influence on the broader market.
- Liquidation Risks Highlighted: With $1.3 billion in forced position closures, traders are reminded to manage leverage carefully amid corrections.
Conclusion
In summary, Bitcoin’s price drop below $100,000 has ushered in a wave of volatility, with Ethereum and other altcoins facing steeper declines and $1.3 billion in liquidations per CoinGlass. This correction, the first sub-$100,000 mark since early May 2024, follows a record high and underscores the sector’s inherent risks. As the market stabilizes, investors should monitor key indicators closely for signs of recovery, positioning themselves wisely in this dynamic landscape.
The cryptocurrency market’s recent downturn began with Bitcoin’s plunge on Tuesday, erasing gains from its recent peak. Trading data from Coinbase showed the asset dipping to $99,954, a level not seen in six months, before edging back up slightly. This movement contributed to a 6% daily loss, compounding the 12% weekly and 18% monthly declines. Analysts point to profit-taking and macroeconomic factors as contributors, though the exact catalysts remain multifaceted.
ethereum’s performance has been particularly stark, with its value crossing below $3,300 after a 10% drop. This mirrors patterns observed in previous cycles, where Ethereum often moves in tandem with Bitcoin but with greater amplitude due to its sensitivity to network activity and investor sentiment. XRP, trading at $2.17 after a 7.5% fall, has been influenced by regulatory developments and overall risk aversion, while Solana’s 8% slide to $154 reflects concerns over scalability amid high trading volumes.
Dogecoin, known for its meme-driven volatility, shed 7% to reach $0.157, illustrating how even non-fundamental assets are not immune. The liquidation data from CoinGlass provides a clear picture of the fallout: $1.3 billion across the board, with longs comprising the bulk at over $1.1 billion. This exceeds Monday’s figures, indicating escalating pressure on bullish positions.
Bitcoin’s dominance in liquidations, at $470 million, aligns with its market leadership role. Ethereum follows at $377 million, emphasizing the concentration of risk in top assets. Market observers, including those tracking sentiment platforms like Myriad, noted a shift from optimism—where a 44% chance of hitting $120,000 was predicted just 24 hours earlier—to caution as prices breached key support levels.
From a broader perspective, this event fits into the crypto market’s history of boom-and-bust phases. After surging to over $126,000 in early October 2024, the pullback to below $100,000 serves as a reminder of the asset’s cyclical nature. Sources such as CoinMarketCap have documented similar patterns, where corrections of 10-20% often precede further gains in bull markets.
Experts in the field, including on-chain analysts, stress the importance of diversification and risk management. Quotes from financial commentators highlight that while short-term pain is evident, long-term adoption trends remain positive, driven by institutional interest and technological advancements. The absence of external shocks in recent reports suggests this is primarily a technical correction rather than a fundamental shift.
Looking at trading volumes, the heightened activity during the drop indicates strong participation, which could pave the way for stabilization. Coinbase data shows increased inflows and outflows, typical during volatile periods. As Bitcoin hovers around $100,906 post-rebound, traders are watching resistance levels near $107,000 for potential recovery signals.
For Ethereum and altcoins, the steeper losses point to beta risks, where assets amplify Bitcoin’s moves. Solana’s drop, for instance, ties into its high-throughput appeal waning under pressure, while XRP’s resilience in past downturns offers some comparative insight. Dogecoin’s movement, though speculative, often serves as a sentiment barometer for retail investors.
The liquidation cascade, per CoinGlass, not only wiped out leveraged bets but also contributed to the downward spiral through forced selling. This self-reinforcing loop is a common feature in crypto trading, amplified by 24/7 markets and global access. With Bitcoin leading at $470 million in losses, it reinforces its pivotal role in ecosystem stability.
Sentiment analysis from platforms like Myriad reveals how quickly perceptions change; the prior 44% odds for a $120,000 target evaporated as reality set in. This underscores the speculative element still prevalent in crypto, despite growing maturity. Fact-based reporting from trackers like CoinMarketCap ensures investors have reliable data points amid the noise.
In conclusion, while the drop raises questions about momentum, historical precedents suggest resilience. Monitoring liquidations and price action will be key, as the market navigates this phase with professional caution.
