BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

Bitcoin Dumps Under $100K Causing $300 Million in Liquidations: What’s Next for Altcoins?

by Sham
January 7, 2025
in CRYPTO, INVESTING
Reading Time: 3 mins read
A A
3
SHARES
51
VIEWS
Share on XShare in TelegramShare on Reddit

• The crypto market had a rough Tuesday morning
• Bitcoin (BTC) slipped over 4%
• Major altcoins like ETH and SOL tumbled between 6%-9%

The crypto market had a rough Tuesday morning, with Bitcoin (BTC) slipping over 4% and major altcoins like ETH and SOL tumbling between 6%-9%. The culprit? Stronger-than-expected U.S. economic data, which sent bond yields soaring and dimmed hopes for Federal Reserve rate cuts this year.

JUST IN: $380,000,000 has been liquidated over the last 24 hours

Over $300,000,000 are due to altcoins$BTC accounts for less than 20% of the total liquidations 😳 pic.twitter.com/yw5ZXXLbSB

— BlockNews (@blocknewsdotcom) January 7, 2025

Stronger U.S. Economic Reports Shake Markets

Two key economic reports released Tuesday surprised analysts and rattled financial markets.

First, the Bureau of Labor Statistics’ JOLTS job openings report showed job vacancies rising to 8.1 million in November—well above the 7.7 million expected and last month’s 7.8 million. At the same time, the ISM Services PMI for December came in at 54.1, exceeding forecasts of 53.3 and climbing from November’s 52.1.

The real kicker? The Prices Paid subindex spiked to 64.4, a red-hot figure compared to the expected 57.5. While neither report typically moves markets significantly, the combination of strong data sent shockwaves through bond markets, driving the 10-year U.S. Treasury yield to 4.68%—just shy of multi-year highs.

Crypto Prices Take a Hit

Unsurprisingly, the rising bond yields and stronger economic data weighed heavily on risk assets, including crypto. BTC, which had hovered just below $101K earlier in the day, dipped to $97,800 by mid-morning. That’s a 4% drop in just 24 hours.

Altcoins fared even worse. Ethereum’s ETH and Solana’s SOL dropped 6%-7%, while Avalanche (AVAX) and Chainlink (LINK) sank 8%-9%.

Massive Liquidations Hit the Market

This sudden sell-off triggered a wave of liquidations across the crypto derivatives markets. According to CoinGlass, nearly $300 million in long positions—bets on rising prices—were wiped out. It’s the first major leverage flush of the year, and it hit traders hard.

Rate Cut Hopes Fizzle

The strong economic data has also put the brakes on hopes for Federal Reserve rate cuts in 2025.

While no one expected a rate cut at the Fed’s January meeting, the odds of a March cut have dropped to just 37%, down from nearly 50% last week, according to the CME FedWatch tool. Even the chances of a May cut have plummeted. For the entire year, investors are now only pricing in one 25 basis point rate cut, according to Kyle Chapman of Ballinger Group.

The takeaway? The crypto market, like broader financial markets, is in a delicate balancing act. Strong economic data may be great for the economy but can spell trouble for risk assets like Bitcoin and altcoins. Buckle up; it looks like 2025 could be a bumpy ride.

Tags: BitcoincryptoethFederal ReserveSOL
Tweet1ShareShare
Previous Post

Decentralized Exchanges Surpass $320 Billion in Monthly Trading Volume

Next Post

Czech National Bank Governor Open to Future Bitcoin Investments

DON'T MISS THESE! HOT OFF THE PRESS

Toncoin and Telegram: The Sleeping Giant of 2025?
BITCOIN

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL
BITCOIN

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules
CRYPTO

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Connecticut Bans Bitcoin and Crypto for Government Funds
BITCOIN

Connecticut Bans Bitcoin and Crypto for Government Funds

July 1, 2025
Shiba Inu: Turning $3,000 into $10,000 – The Math Behind the Meme
CRYPTO

Shiba Inu: Turning $3,000 into $10,000 – The Math Behind the Meme

July 1, 2025
FARTCOIN Surges 148%—Is the Meme Just the Beginning?
CRYPTO

FARTCOIN Surges 148%—Is the Meme Just the Beginning?

July 1, 2025
Load More

Related News

Toncoin and Telegram: The Sleeping Giant of 2025?

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Donald Trump Threatens Elon Musk with DOGE Audit

Donald Trump Threatens Elon Musk with DOGE Audit

July 1, 2025
Jerome Powell Says July May be Too Early for Rate Cuts, But Doesn’t Rule it Out

Jerome Powell Says July May be Too Early for Rate Cuts, But Doesn’t Rule it Out

July 1, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.