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- Bitcoin’s crash triggered cascading sell-offs, leading to sharp declines across Ethereum, XRP, Dogecoin, and Solana.
- $1.17B liquidations highlight market volatility, with Bitcoin’s dominance influencing broader crypto movements.
The cryptocurrency market faced a sharp pullback as Bitcoin tumbled 7% to $97,020, just two days after reaching a record high above $108,000. Previously, after Bitcoin crashed below $53,500, a recent CNF update predicted that BTC’s $48,000 support level would be critical.
This significant decline marked a sudden reversal of recent gains, sparking a broader sell-off across the crypto space. The correction, which began on Wednesday, has rattled investor confidence and set the stage for broader market turbulence. According to The Motley Fool platform:
The narrative around Bitcoin is extremely bullish at the moment. Smart investors understand that this has happened before. In 2013, 2017, and 2021, investors got increasingly optimistic about Bitcoin right before a price crash. Is the cryptocurrency setting up for another crash in 2025? Let’s take a closer look at Bitcoin as we sit here in December 2024 and whether the cryptocurrency belongs in your portfolio today.
Ethereum, XRP, and Dogecoin Suffer Steep Losses
Ethereum experienced a 12% drop, with its price falling to $3,422. XRP declined by 11%, trading at $2.22. Dogecoin, one of the hardest-hit assets, plummeted nearly 20% to approximately $0.31, erasing much of its recent momentum.
Solana also joined the decline, slipping below the $200 threshold to $191, marking a 12% loss. The sell-off reflects widespread uncertainty and profit-taking among investors as the market adjusts to Bitcoin’s dramatic reversal.
Liquidations Amplify Market Pressure
The market’s sharp downturn triggered liquidations totaling $1.17 billion in the last 24 hours, according to CoinGlass data. Bitcoin alone accounted for $241 million in liquidations, highlighting its outsized influence on the broader market.
As of now, BTC is valued at $96,790.06, reflecting a 4.40% decline in the past day and a 3.11% decline in the past week. See BTC price E chart below.
No coins selectedThe overall cryptocurrency market is down 9%, based on CoinGecko data, illustrating the cascading effects of Bitcoin’s pullback. This wave of liquidations underscores the volatile nature of the market, as leveraged positions are unwound under significant price corrections.
As the market navigates this turbulence, attention now turns to whether Bitcoin and other major cryptocurrencies can stabilize or face further downside pressure. The coming days will be crucial in determining the next phase of this volatile market cycle.
