Bitcoin and Cryptocurrencies See Significant Losses
Bitcoin has taken a sharp turn downward, dropping below $97,000 after briefly surpassing the $100,000 mark earlier this week. Currently trading at $96,880, Bitcoin has declined 3% in the past 24 hours. This downturn has rippled through the crypto market, with Dogecoin falling 8% to $0.428, XRP dropping 15% to $2.38, and Solana declining 6% to just under $222. Ethereum has also faced a 7% drop, trading at $3,786. Meme coins like Popcat and Peanut the Squirrel have been hit hardest, plummeting over 20%.
Other major cryptocurrencies, including Avalanche, Shiba Inu, Chainlink, and Polkadot, have each lost around 9% in the last day. Even steeper declines have been observed in Worldcoin and Monero, which fell 22% and 21%, respectively. The market has seen over $1.71 billion in liquidations, impacting more than 500,000 traders. Binance, OKX, and Bybit recorded the highest liquidation volumes, with Bitcoin alone accounting for $86 million, according to CoinGlass.
Signs of Institutional Interest Amid the Downturn
Despite the widespread losses, there are hints of institutional interest in Bitcoin. CryptoQuant reports an outflow of 8,455 BTC from Coinbase Advanced Exchange, a signal of potential accumulation by institutional investors. Analysts suggest this trend reflects growing confidence from large-scale players.
Metrics also hint at stabilization. The “Realized Profit” metric has dropped from $10.5 billion daily to $2.5 billion, reducing sell-side pressure. Futures funding rates have normalized, indicating a decline in speculative activity. Although Bitcoin ETFs recorded net outflows of $90.5 million on Monday, last week’s inflows of $2.7 billion continue to provide a strong foundation for recovery.
Record Highs and Market Optimism
Just last week, Bitcoin reached an all-time high of $103,679, breaking the $100,000 barrier for the first time. This milestone comes nearly $30,000 above its previous record set last month during the U.S. Election Day, when Donald Trump won his second term. Market sentiment during this period was buoyed by optimism surrounding Trump’s policies, including his appointment of David Sacks to oversee AI and cryptocurrency policy.
Broader Market Impact
Meme coins and major altcoins have also been affected. XRP has dropped 14% this week after reaching a seven-year high of $2.82. Similarly, Cardano and Dogecoin have declined 11% and 8%, respectively, reflecting the broader market turbulence.
Outlook: Recovery or More Volatility?
While the crypto market faces heightened volatility, institutional accumulation and strong ETF inflows suggest a potential for recovery. Analysts remain cautiously optimistic, keeping an eye on stabilization signals in the coming days. For now, the market continues to navigate the aftermath of its recent highs and steep declines.
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