Bitcoins (BTC) Drop Below $100K Sparks Massive Crypto Selloff
- BTCs fall below $100K caused a broad selloff, with $800M liquidated and XRP dropping 19%.
- Hawkish Fed signals fewer rate cuts and sticky inflation, rattling markets further.
- BTC reclaimed $101,300, ETH rose to $3,700, and XRP steadied at $2.35.
The cryptocurrency market reeled from a sharp downturn, triggered by Bitcoins unexpected fall below the $100,000 price mark. After reaching highs of $108,000, Bitcoin (BTC) plunged to $98,800 within 24 hours, dragging altcoins like XRP, Ethereum (ETH), and Solana (SOL) down with it. Over $800 million in market liquidations marked a turbulent day for investors.
The cryptocurrency market faced a wave of losses, with Bitcoin leading the downturn. The flagship digital asset fell by 7.2%, sliding from recent highs to trade near $101,300.
Ethereum also suffered a significant blow, dropping over 9%. The second-largest cryptocurrency by market cap is now stabilizing around $3,700, reflecting broader market jitters.
XRP experienced one of the steepest declines among major altcoins, plummeting 19%. However, it has shown signs of recovery, bouncing back to approximately $2.35 as the market steadies.
Solana, another prominent asset, wasnt spared either, losing 12% of its value. It is currently trading just below the critical $200 level, underscoring the widespread impact of the selloff.
Federal Reserve Chair Jerome Powells post-FOMC meeting comments shook investor confidence. While the Fed cut rates by 25 basis points to 4.254.5%, Powell warned inflation remains sticky. The Feds revised 2025 inflation projection of 2.5%, up from 2.1%, coupled with fewer rate cuts, signaled tighter monetary conditions.
Powell also dismissed speculation about a Bitcoin national reserve, citing legal barriers and lack of intent to change them. Analysts attributed the crypto markets reaction more to Powells hawkish stance than the expected rate cut itself.
Bitcoin and Other Crypto Recovery in Sight?
Despite the initial panic, major cryptocurrencies began stabilizing. BTC regained footing above $100,000, while ETH and XRP clawed back part of their losses. Ali Martinez, a prominent crypto analyst, advised against panic selling, urging investors to focus on long-term fundamentals.
The market remains wary of tighter liquidity in 2025, potentially dampening risk-asset performance. For now, investors are digesting the Feds revised outlook and watching closely for broader macroeconomic signals.
Read more: https://www.tronweekly.com/bitcoins-btc-drop-100k-sparks-crypto-selloff/
Text source: TronWeekly
