Today, January 7, 2024, the overall cryptocurrency market is experiencing a significant price decline, leading to lengthy liquidations worth hundreds of millions. Amid this market downturn, Bitcoin (BTC), the world’s largest digital asset by market capitalization, fell more than 5%.
$293 million crypto liquidation
This significant price drop sent BTC plummeting from $102,060 to $96,865 in just a few hours, triggering liquidations worth $293 million in just four hours, according to the on-chain analytics firm. coin mechanism. However, liquidations continue to rise, suggesting that this price decline may not stop there.
The data further reveals that of the $293 million in liquidations, over 90% came from long positions, with $266.18 million in long positions liquidated, while short liquidations amounted to $25.7 million. dollars.
Besides BTC, Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) saw price drops of 7%, 6.2%, 8.5%, and 8%, respectively. Meanwhile, Ripple Labs’ native token XRP appears to be moving against the market trend, showing upward momentum of 1.5%.
Reason Behind Crypto Crash
You may be wondering why the crypto market is experiencing a sudden crash. The reason lies in the sharp rise in US Treasury yields over the past ten years. Today, the Institute for Supply Management (ISM) released a report highlighting that December’s Purchasing Managers’ Index (PMI) for the private sector was 54.1, higher than November’s 52.1.
This data not only impacted the cryptocurrency market but also led to a sharp decline in US stocks due to inflation concerns. Amid this downturn, MicroStrategy (MSTR), the world’s largest Bitcoin holding company, saw a price decline of more than 10%.
