Bitcoin's Plunge Under $100K Resulted in $700 Million Liquidations, XRP Sees 5% Decline
Finance/Markets

Bitcoin's Plunge Under $100K Resulted in $700 Million Liquidations, XRP Sees 5% Decline

A significant drop in Bitcoin's value triggers massive liquidations in the futures market while XRP and dogecoin also suffer losses.

Overview

Bitcoin (BTC) experienced a significant decline below $100,000, leading to over $700 million in liquidations across futures tracking major tokens. XRP and dogecoin (DOGE) products especially faced substantial losses.

Key Points

  • BTC's drop occurred late on Wednesday in the U.S., before seeing minor recovery during early trading hours in Asia.
  • The decline was attributed to indications from the Federal Reserve suggesting rate cuts in 2025, prompting volatility among major digital currencies, including XRP and DOGE, which dropped by as much as 5.5%.

Jerome Powell, the Fed Chair, mentioned constraints on Bitcoin ownership by the central bank, specifically responding to remarks made by Donald Trump regarding Bitcoin reserves. Powell stated, "That’s the kind of thing that Congress should consider, but we are not looking for a law change."

The market reacted sharply, with significant sell-offs leading to over $700 million in bullish positions being liquidated, indicating heightened speculation activity.

Traders anticipate that this situation may signify a turning point for the cryptocurrency market, with implications for Bitcoin's strategic reserve and broader economic policy influencing investor sentiment.

Future Outlook

QCP Capital analysts remain optimistic about 2025, advising investors to hold their positions despite recent fluctuations.

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