Bitcoin (BTC) has started a downward trajectory, briefly falling below $100,000 before recovering to $101,600.
Bitcoin experienced a sharp downturn, touching $98,760 and erasing nearly $10,000 from its recent all-time high (ATH) of $108,000. This significant decline has raised concerns about the possibility of further losses as the market faces increased selling pressure.
The Federal Reserve’s cautious stance on future rate cuts contributed to heightened market volatility, impacting Bitcoin and other risk assets.
The Federal Reserve’s 0.25% rate cut to a range of 4.25%-4.5% led to a 5.6% drop in Bitcoin on Wednesday, briefly falling below $100,000. This was the largest single-day drop since August 5, when it fell 7%.
Despite testing $100,000 again on Thursday, Bitcoin has rebounded slightly to $101,600. Political developments, including a pro-crypto president-elect and plans for a national Bitcoin reserve, have boosted market sentiment, though regulatory uncertainties remain.
The price dip triggered liquidations of over $104 billion in leveraged positions across the cryptocurrency market in the last 24 hours, with more longs getting rekt than shorts.
At the time of writing, the price of Bitcoin is $98,317, which is 5.5% down. In the last 24 hours, Bitcoin traded between a low of $97,032.30 and a high of $104,759, reflecting heightened volatility.
Also Read: Bitcoin Drops Below $100k as Powell Rejects BTC Reserve Plan
