Bitcoin has experienced a significant drop, falling below $97,000 after briefly surpassing $100,000. This has had a ripple effect on the cryptocurrency market, with several altcoins also suffering losses.
Dogecoin has decreased by 8%, settling at $0.428, while XRP has plummeted 15% to $2.38. Solana is trading just under $222 after a 6% decline, and Ethereum has dropped 7% to $3,786. Meme coins like Popcat and Peanut the Squirrel have seen declines exceeding 20%. The broader market has also been affected, with Avalanche, Shiba Inu, Chainlink, and Polkadot recording losses of approximately 9% each. Worldcoin and Monero reported more severe declines of 22% and 21% respectively.
Over $1.71 billion has been liquidated, impacting over half a million traders. Major exchanges such as Binance, OKX, and Bybit have reported the highest volumes of liquidations, with Bitcoin leading at $86 million. Despite the volatility, there are signs of institutional interest in Bitcoin, with a significant outflow of 8,455 BTC from Coinbase Advanced Exchange indicating continued accumulation by institutional investors. The "Realized Profit" metric has dropped from $10.5 billion daily to $2.5 billion, potentially alleviating sell-side pressure. Futures funding rates have also normalized, signaling a decrease in speculative trading activity. However, there are ongoing concerns highlighted by net negative flows of $90.5 million in Bitcoin ETFs. Last week saw impressive inflows of $2.7 billion, providing some cushion for the cryptocurrency.
Bitcoin reached an all-time high of $103,679 last week, surpassing the $100,000 threshold for the first time. This peak was fueled by market optimism following Donald Trump's appointment of David Sacks to a key position in AI and cryptocurrency policy. However, recent price corrections have raised questions about the sustainability of this bullish sentiment. XRP and Cardano have also faced significant declines, with XRP down 14% over the past week after reaching a seven-year high of $2.82. Cardano and Dogecoin have seen declines of around 11% and 8% respectively.
Analysts are cautiously monitoring developments for signs of recovery as the cryptocurrency market navigates through this turbulent phase. The interplay between institutional activity and retail sentiment will be crucial in determining the future trajectory of prices.