The cryptocurrency market experienced a significant decline on January 8, losing about 6.3% in total market capitalization, dropping to around $3.35 trillion. This downturn was primarily triggered by robust US economic data, suggesting potential interest rate hikes. Bitcoin, which fell below the $100,000 mark, led the slump, experiencing a drop of 6.35% to an intra-day low of $5,279. Ether also plummeted, losing all gains from the previous week, settling at $3,300—a 10% loss in 24 hours. Nearly $631 million in long positions were liquidated across derivatives markets as panic selling ensued among investors. This correction mirrored the decline in US equities, with the S&P 500 down 1.1% and significant drops across major indices. The strong economic data has lowered expectations for upcoming Federal Reserve rate cuts, impacting confidence in riskier assets like cryptocurrencies. Following this trend, the total market cap fell below the 50-day simple moving average support, raising concerns over a further decline toward the $3.18 trillion support level.

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