Bitcoin Plummets to $92,000, Triggering $1.2 Billion in Liquidations Across the Network

Bitcoin Plummets to $92,000, Triggering $1.2 Billion in Liquidations Across the Network

Bitcoin Plummets to $92,000, Triggering $1.2 Billion in Liquidations Across the Network

The cryptocurrency market continued its correction on Friday, with Bitcoin (BTC) price dropping from approximately $100,600 to the $92,000 range, resulting in a 9% decline over the past 24 hours. Prior to the deadline, the trading price of Bitcoin slightly rebounded to $94,000.

Altcoins experienced even more severe declines, with Ethereum (ETH) falling from $3,600 to as low as $3,100, marking a 12% drop in the last 24 hours. Ripple (XRP), Binance Coin (BNB), and Solana (SOL) saw declines of approximately 10%, 8%, and 12%, respectively. Due to Bitcoin’s relatively smaller drop, its market capitalization share briefly rebounded to 60%.

Price performance of the top ten cryptocurrencies by market capitalization (Source: CoinMarketCap)

Today’s correction also triggered large-scale liquidations in the derivatives market. According to data from Coinglass, approximately 428,000 individuals globally faced liquidation in the last 24 hours, with a total liquidation amount of $1.4 billion, of which $1.2 billion was from long positions.

According to previous reports by ZOMBIT, the U.S. Federal Reserve forecasted at this week’s FOMC meeting that it would slow down the pace of interest rate cuts next year, with only two rate cuts expected. The disappointing interest rate outlook has put selling pressure on Bitcoin as a risk asset, contributing to a weakening overall cryptocurrency market. Since the conclusion of the FOMC press conference, Bitcoin has fallen by approximately 11%.

The weakening market confidence is also reflected in the performance of cryptocurrency exchange-traded funds (ETFs). According to statistics from SoSoValue, the U.S. Bitcoin spot ETF recorded a net outflow of $680 million on Thursday, marking a new high for single-day net outflows and ending a streak of 15 consecutive trading days of net inflows.