#btc #eth #xrp #sol #US10YearTreasuryYieldFallsTo4.845% ⛔⛔⛔ WHY DID BITCOIN PLUMMET TODAY??? ⛔⛔⛔ Today’s sharp decline in the price of Bitcoin was driven by a chain reaction of liquidations across leveraged positions in the cryptocurrency market, triggered by a collapse in technology stocks—specifically within the artificial intelligence and chip sectors—on Wall Street.
Bitcoin began the day on a strong note, nearing the $81,100 level; however, following the opening of the U.S. stock markets, it shed approximately 5% of its value, falling sharply below the $76,000 mark.
The primary factors that dragged the market down in a matter of minutes are as follows:
1. AI Correction on Wall Street (Nasdaq Collapse)
Sell-off in Chip and AI Stocks: The Nasdaq index in the U.S. entered correction territory, plunging by nearly 4%. Losses ranging from 5% to 9% in shares of industry giants such as Nvidia, Tesla, and Broadcom completely erased global risk appetite, pulling the cryptocurrency market down along with them.
2. Liquidation of Leveraged Positions (Long Liquidations)
Massive Wave of Liquidations: After Bitcoin surpassed $80,000 last night—following the resolution of uncertainty surrounding the U.S. elections—it attracted late-stage buyers who entered the market using borrowed capital (leverage). When the decline in the Nasdaq was triggered, more than $370 million worth of leveraged "long" positions were forcibly liquidated within just one hour. This created a snowball effect, intensifying selling pressure and driving the price down to $76,100. 3. US Employment Data Falls Short of Expectations
Weakening Expectations for Interest Rate Cuts: The weekly jobless claims figure released today (189,000) reached one of the lowest levels seen since 1969. Such a tight labor market has fueled expectations that the US Federal Reserve (Fed) will not be in a rush to cut interest rates, putting pressure on interest-rate-sensitive, riskier assets.
Bitcoin began the day on a strong note, nearing the $81,100 level; however, following the opening of the U.S. stock markets, it shed approximately 5% of its value, falling sharply below the $76,000 mark.
The primary factors that dragged the market down in a matter of minutes are as follows:
1. AI Correction on Wall Street (Nasdaq Collapse)
Sell-off in Chip and AI Stocks: The Nasdaq index in the U.S. entered correction territory, plunging by nearly 4%. Losses ranging from 5% to 9% in shares of industry giants such as Nvidia, Tesla, and Broadcom completely erased global risk appetite, pulling the cryptocurrency market down along with them.
2. Liquidation of Leveraged Positions (Long Liquidations)
Massive Wave of Liquidations: After Bitcoin surpassed $80,000 last night—following the resolution of uncertainty surrounding the U.S. elections—it attracted late-stage buyers who entered the market using borrowed capital (leverage). When the decline in the Nasdaq was triggered, more than $370 million worth of leveraged "long" positions were forcibly liquidated within just one hour. This created a snowball effect, intensifying selling pressure and driving the price down to $76,100. 3. US Employment Data Falls Short of Expectations
Weakening Expectations for Interest Rate Cuts: The weekly jobless claims figure released today (189,000) reached one of the lowest levels seen since 1969. Such a tight labor market has fueled expectations that the US Federal Reserve (Fed) will not be in a rush to cut interest rates, putting pressure on interest-rate-sensitive, riskier assets.
