Bitcoin's price unexpectedly fell below $100,000 on January 7 during early U.S. trading hours, leading to massive liquidations in the crypto market.
Crypto market under pressure
According to Coinglass data, approximately $206 million in crypto positions were liquidated within an hour following a sudden price drop across the market. Bitcoin dropped to a low of $97,207, causing the global crypto market cap to decrease by 4.5% to $3.44 trillion. This affected other cryptocurrencies like Ethereum, XRP, and Solana, which all fell by more than 5%.
Widespread exchange liquidations
Total liquidations in the last 24 hours reached $388 million, with $206 million wiped out in a single hour. The majority of these liquidations involved both long and short positions across major exchanges, with the largest single liquidation order being an ETHUSDT position on Binance valued at more than $11.9 million.
Macroeconomic data as crash trigger
Bitcoin's sudden dip, which triggered a broader market sell-off, came in response to the latest U.S. macroeconomic data. Crypto analyst Miles Deutscher expressed the sentiment in his post on X, noting high ISM index and increased JOLTS job openings, leading to a bond yield spike, affecting risk assets.
The cryptocurrency market once again shows its high volatility, with the current U.S. economic situation contributing to instability affecting prices and investor positions.
