Cryptocurrency Market Declines as Bitcoin Drops Below $97K Amid $1.71 Billion Liquidations – The crypto market faces a sharp downturn as Bitcoin falls to $96,880, triggering $1.71 billion in liquidations. Signs of institutional interest and ETF inflows hint at possible recovery.
Cryptocurrency Market Takes a Hit as Bitcoin Drops Below $97K
The cryptocurrency market faced a sharp downturn this week, with Bitcoin falling to $96,880, marking a 3% dip within 24 hours after briefly surpassing $100,000. The decline triggered liquidations exceeding $1.71 billion, affecting over 500,000 traders globally. Major exchanges, including Binance, OKX, and Bybit, reported the highest liquidation volumes as the market saw widespread losses across major tokens.
Market Snapshot: Key Losses
The sell-off extended beyond Bitcoin, impacting altcoins and meme coins alike:
- Bitcoin: Down 3% to $96,880.
- Ethereum: Fell 7% to $3,786.
- Dogecoin: Dropped 8% to $0.428.
- XRP: Declined 15% to $2.38.
- Solana: Decreased by 6%, closing at just under $222.
- Avalanche, Shiba Inu, Chainlink, Polkadot: Each recorded approximately 9% losses.
- Worldcoin and Monero: Saw the steepest declines at 22% and 21%, respectively.
- Meme Coins (Popcat, Peanut the Squirrel): Registered losses exceeding 20%.
Signs of Stabilization Amid Turbulence
While the broader market struggles, analysts see signs of possible stabilization:
Also Read – Bitcoin Faces Market Transition Amid Volatility and Mixed Analyst Outlook
- Institutional Accumulation: Coinbase Advanced Exchange reported an outflow of 8,455 BTC, signaling potential institutional buying interest.
- Reduced Selling Pressure: The “Realized Profit” metric dropped from $10.5 billion to $2.5 billion daily, reflecting diminished sell-side activity.
- Normalized Futures Funding Rates: Indicate reduced speculative trading.
- ETF Activity: Although Bitcoin ETFs saw net outflows of $90.5 million on Monday, they recorded inflows totaling $2.7 billion the previous week.
Looking Ahead
The recent market turbulence, fueled partly by speculative activity and optimism surrounding the U.S. presidential election, has overshadowed Bitcoin’s all-time high of $103,679. However, institutional interest and ETF support offer hope for a recovery. Analysts remain cautiously optimistic, closely monitoring market trends and institutional behavior to gauge the potential for future stability.
