On January 7, during early U.S. trading, an abrupt drop in Bitcoin‘s value below $100,000 caused a significant increase in the number of cryptocurrency transactions where positions were closed, due to the unexpected price change.
Based on data from Coinglass, it’s estimated that around $206 million worth of cryptocurrency positions were liquidated in just an hour, after a sharp price decrease occurred throughout the market. The value of Bitcoin (BTC) plummeted to as low as $97,207, representing a 4% fall that dragged the total crypto market capitalization down by 4.5%, bringing it to approximately $3.44 trillion.
The drop in Bitcoin prices led to a general weakening among other cryptocurrencies, specifically Ethereum, XRP, and Solana. At the point of writing, Ethereum was close to $3,475, XRP at $2.32, and Bitcoin trading around $97,664. However, Solana experienced a more significant decline of 6% to $208.
In the past 24 hours, total cancellations amounted to approximately $388 million. Remarkably, around $206 million were cancelled within just an hour. A large portion of these cancellations occurred in significant trades involving both long and short positions on primary trading platforms.
In the first quarter of 2025, the number of traders who were liquidated within a 24-hour period exceeded 129,900, which is a significant figure compared to the largest daily and hourly liquidations recorded this month so far. Notably, the single largest liquidation order involved an ETHUSDT position on Binance, worth over $11.9 million.
The unexpected drop in Bitcoin led to a wider market decline, and this happened following the release of recent U.S. economic statistics. Cryptocurrency expert Miles Deutscher expressed this general feeling in a post on platform X.
The market is dropping because strong U.S. economic data has led to an increase in bond yields. This data includes a higher-than-expected ISM index and an increase in JOLTS job openings. Essentially, good economic news can sometimes be bad for risky assets like stocks, as it might lead the Federal Reserve to raise interest rates more aggressively in the next two weeks.
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2025-01-07 20:17