Bitcoin Plunges 20% to $99,980 Amid Record $19B Liquidations
Bitcoin has plunged below the psychologically important $100,000 mark and is now at its lowest point since June. The price tumbled...
Quick overview
- Bitcoin has fallen below $100,000, marking its lowest point since June with a 5% drop on Tuesday.
- The cryptocurrency market is experiencing significant sell-offs, with over $19 billion in positions liquidated in a single day.
- Tech stocks are also suffering, with companies like Nvidia and Palantir seeing substantial declines amid increased market volatility.
- Despite easing trade tensions and interest rate cuts, the crypto market remains gloomy, compounded by ongoing economic uncertainty.
Bitcoin has plunged below the psychologically important $100,000 mark and is now at its lowest point since June. The price tumbled more than 5% on Tuesday to $99,980, wiping out all the gains made last month.
The 20% drop from its recent peak puts bitcoin firmly in bear-market territory. Ethereum isn’t doing any better either, with a whopping 6.6% crash during Tuesday’s session. Some altcoins are actually down a staggering 50% or more this year.
The sell-off was particularly brutal—it was one of the most aggressive single-day dumps in the cryptocurrency space. In a single 24-hour24-hour period, over $19 billion in positions were wiped out, sending around 1.6 million traders packing.
Tuesday’s total liquidation of $1.36 billion was still a pretty significant number; however, open interest in bitcoin futures remains lower than before the market crash. Analysts reckon that this subdued recovery is down to weak market sentiment still lingering in the background.
Bitcoin Price Plunge Has Tech Stocks Following Suit
The collapse in Bitcoin’s price has some similarities to the steep corrections seen in high-flying tech companies, including Nvidia and Palantir. Like with crypto, these firms are being hit by high valuations and investors getting cold feet about risk. Some notable tech companies have seen their value plummet recently.
- Nvidia has lost 15% over the last few weeks.
- Palantir has dropped over 12% in the last month.
- The broad tech indices are showing really increased volatility right now.
The correlation between these sorts of speculative assets and the tech sector is a big deal. The lack of confidence is palpable amid the economic uncertainty.
Trade Tensions Ease, But Crypto Market Remains Gloomy
Despite the recent trade truce between the US and China, the crypto market still isn’t recovering all that much. The easing of tensions has seen the US slash tariffs on Chinese goods and China agree to buy more soybeans and hold off on exporting rare earths.
The monetary authorities have been trying to stimulate growth, too—the US Federal Reserve and the Bank of Canada have each cut interest rates by 25 basis points in the last week.
That’s brought the Fed’s benchmark rate down to 3.75-4.00 for the second time this year. Even with all these measures in place, though, the markets still aren’t feeling any better.
Add to that the ongoing US government shutdown – which is now a record-breaker after the Senate failed to pass a short-term funding bill 14 times – and you can see why it’s all feeling really uncertain out there.
With bearish signals dominating both the crypto and tech sectors, analysts are warning that traders should be prepared for more volatility in the coming weeks.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save