Bitcoin, Ethereum, Dogecoin Join Equities In Sell-Offs As Economic Data Pours Cold Water On Rate Cut Hopes: $97K Holds Significance For BTC
January 7, 2025
Leading cryptocurrencies nosedived, on Tuesday, as the latest economic data poured cold water on interest rate-cut expectations.
| Cryptocurrency | Gains +/- | Price (Recorded at 8:15 p.m. ET) |
| Bitcoin (CRYPTO: BTC) | -4.76% | $97,056.00 |
|
Ethereum (CRYPTO: ETH)
|
-7.59% | $3,402.50 |
| Dogecoin (CRYPTO: DOGE) | -9.40% | $0.3507 |
What Happened: Bitcoin fell to $96,200 late afternoon before dip-buying propelled the leading cryptocurrency up a few notches. This comes a day after it hit $100,000 after a gap of more than two weeks.
Ethereum’s decline was steeper as the second-largest cryptocurrency lost nearly 8% of its value in 24 hours, plunging to $3,880.
Cryptocurrency liquidations hit $559 million in the last 24 hours, the highest since Dec. 20. More than $500 million in long liquidations was witnessed.
Top traders on Binance seemed to be buying the dip, as over 63% of them were long on Bitcoin, compared to 36% shorting the cryptocurrency.
About $555 million in short positions risked liquidation if Bitcoin rebounds to $100,000.
The slump cooled the sentiment from “Extreme Greed” to “Greed,” according to the Crypto Fear & Greed Index.
Top Losers (24-Hours)
| Cryptocurrency | Losses | Price (Recorded at 8:15 p.m. ET) |
| dYdX (DYDX) | 12.33% | $1.43 |
| Pudgy Penguins (PENGU) | 11.88% | $0.03761 |
| Lido DAO (LDO) | 11.85% | $1.78 |
The global cryptocurrency market capitalization slumped 5.29% to $3.39 trillion in the last 24 hours.
Stocks faced heavy sell-offs on Tuesday. The Dow Jones Industrial Average lost 178.20 points, or 0.42%, to close at 42,528.36. The tech-heavy Nasdaq Composite slipped 1.89%, ending at 19,489.68, while the S&P 500 fell 1.11% to 5,909.03.
The decline followed a report revealing stronger-than-expected U.S. services sector growth, but a steep increase in the Prices Index stoked fears about inflationary pressures.
According to the CME FedWatch tool, traders priced in a 95% chance that the current interest rate range of 4.25%-4.50% would remain unchanged, up from 91% the day before.
While the equities sold off, yields on risk-free debt rose. The benchmark Treasury yield hit 4.69, its highest since late April.
See More: Best Cryptocurrency Scanners
Analyst Notes: Popular cryptocurrency analyst Michaël van de Poppe weighed in on Bitcoin’s latest correction.
“Couldn’t hold above $98-100,000 and we’re dropping down. Likely this is going to give a period of consolidation,” the analyst predicted.
However, he added that once the correction ends, the entire market will rally, with altcoins witnessing the “strongest bounces.”
Search
RECENT PRESS RELEASES
Related Post
