Bitcoin (BTC) Plummets Below $96K Amid $700 Million in Liquidations, Ethereum (ETH) and Solana (SOL) Follow Suit

The cryptocurrency market witnessed a dramatic downturn today, resulting in more than $700 million in liquidations as major assets like bitcoin (btc), ethereum (eth), and solana (SOL) experienced significant price declines. Bitcoin’s value dipped below the $96,500 threshold, falling sharply from approximately $102,500, which played a pivotal role in the surge of liquidations. The downturn in cryptocurrency prices has been attributed to escalating U.S. Treasury yields, which have been a concern for investors over the past decade. Moreover, a recent report issued by the Institute for Supply Management (ISM) revealed that December’s private sector Purchasing Manager Index (PMI) rose to 54.6, up from November’s 52.5, contributing to increased market volatility.

The impact of this market crash extended to a wide array of Altcoins, with most experiencing declines of between 5% and 10% within a 24-hour period. Meme coins also faced similar pressures, as Dogecoin (DOGE) and Shiba Inu (SHIB) saw their values plummet by approximately 8% to 10% during the same timeframe. This widespread bearish trend underlines the heightened uncertainty and risk aversion among crypto investors.

As a result of these market shifts, the global cryptocurrency market capitalization fell roughly 6%, settling at around $3.37 trillion. In contrast, trading volumes surged by approximately 27%, reaching $162 billion, as traders reacted to the prevailing market conditions, indicating a mix of panic selling and opportunistic buying.

Notable cryptocurrencies such as Bitcoin, Ethereum, XRP, and Solana saw significant price drops during this latest market crash. Ripple CEO Brad Garlinghouse’s recent meeting with former U.S. President Donald Trump at Mar-a-Lago has sparked discussions about potential future dialogues regarding regulatory clarity, which may influence the market’s trajectory moving forward.

In the current market scenario, Bitcoin’s trading price is approximately $95,733, marking a 5% decline over the past day. The cryptocurrency’s 24-hour trading range has been between $95,421 and $102,017. According to SoSo Value data, Bitcoin ETFs have recorded a total inflow of around $52 million, with BlackRock acquiring $596 million worth of ETFs. However, Ark Invest and 21Shares have liquidated approximately $212 million worth of their ETF holdings, and Grayscale has also sold around $125 million.

Ethereum (ETH) is currently trading at about $3,383, reflecting an 8% decline in the last 24 hours. Its trading range has been between $3,357 and $3,687. The Ethereum ETF has experienced an outflow of approximately $86 million, with Fidelity liquidating about $67 million of its ETF holdings. Data from BlackRock regarding Ethereum’s performance is still pending.

Meanwhile, Solana (SOL) is priced at around $199, also down by 8% in the past day. The cryptocurrency’s trading range has been between $198 and $217. Notably, a Canadian firm, Sol Strategies, recently announced a strategic investment of CAD $25 million into Solana’s blockchain ecosystem, indicating ongoing interest in its potential.

XRP has not been spared from the market’s downturn, experiencing a decline of about 3%. It is currently trading between $2.27 and $2.46, with a market capitalization of approximately $134 billion.

In contrast to the widespread losses, Bitget Token (BGB) emerged as a rare gainer, trading at $6.52 with a 6% increase in the last 24 hours. Its trading range was between $6.21 and $6.64.

On the other hand, Hyperliquid (HYPE) faced the most significant losses, plummeting by 15% and trading between $21.95 and $26.29. Its market cap is around $7.31 billion, with a trading volume of approximately $1.92 billion. Similarly, dYdX experienced a decline of 13%, trading at about $1.40, with its low and high for the day recorded at $1.397 and $1.635, respectively.

Meme coins also followed the downward trend, mirroring Bitcoin’s trajectory. Dogecoin (DOGE) has decreased by approximately 10%, currently trading at $0.35, while Shiba Inu is down by 9% at $0.00002173. Other notable meme coins such as PENGU, BONK, and PEPE also saw declines ranging from 10% to 12%.

According to data from Coinglass, the 24-hour liquidation amount reached $700 million, predominantly comprising $547 million from long positions and $59 million from short positions. In the last four hours alone, total liquidation stood at $85 million, with long positions accounting for $77 million. Over the past day, around 192,418 traders faced liquidation, with the largest single liquidation order occurring on Binance for ETHUSDT, valued at approximately $17.74 million.

As the cryptocurrency market grapples with these significant challenges, analysts and investors alike will be keenly observing upcoming trends and regulatory developments that could influence market stability and investor sentiment in the weeks to come.