In a sudden market downturn, Bitcoin (BTC) dropped below the psychological $100,000 mark, falling from its recent high of $106,294 to $99,462. The sharp decline triggered widespread liquidations across cryptocurrency markets.
The price plunge led to approximately $135 million in Bitcoin long positions being liquidated, with total crypto market liquidations reaching $902 million. Bitcoin's market capitalization now stands at $1.98 trillion, while trading volume surged to $78.49 billion over the past 24 hours.
Market analysts attribute the downturn to several factors, including reactions to former President Trump's inauguration-related events and the recent launch of Trump-affiliated meme tokens TRUMP and MELANIA. Trump had previously taken credit for Bitcoin's price increases, referring to it as the "Trump effect."
Some traders view the price drop as a classic "sell the news" event following the inauguration buildup. The cryptocurrency community has been particularly active on social media, with many noting that the pre-inauguration sell-off may have preempted an expected post-event decline.
The current market movement occurs amid broader economic uncertainties affecting both digital currencies and risk-based assets. As Bitcoin continues to display high volatility, both veteran crypto investors and newcomers remain watchful of further price developments in this dynamic market environment.
The sudden price movement serves as a reminder of cryptocurrency markets' inherent volatility, even as Bitcoin has achieved new milestones in institutional adoption and market capitalization.