Crypto markets faced significant turmoil as $1.4 billion in liquidations occurred following a sharp decline in Bitcoin's price, which fell to lows of $92,000. This 13.4% drop from recent all-time highs resulted in even steeper declines among altcoins, with Ethereum down 16%, XRP plunging 18%, and Dogecoin declining by 26%. Traders reported this liquidity crisis may represent one of the largest liquidation events in cryptocurrency history. Over the past three weeks, total liquidations reportedly approached $10 billion. Contributing to this downturn was Federal Reserve chair Jerome Powell's indication that interest rate cuts may be less frequent in 2025 than previously anticipated. The fallout also affected the stock market, causing declines in indices like the S&P 500 and Nasdaq. Despite these challenges, some analysts remain optimistic, highlighting continued institutional investment in Bitcoin and upcoming political changes that could bolster market conditions in the near future.

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