Bitcoin drops to its lowest level since November 2024 amid $840 million in derivatives liquidations, erasing nearly $900 billion from crypto markets in 22 days.
Bitcoin crashed to $70,100, its weakest level since November 2024, as $840 million in leveraged positions were liquidated within 24 hours.
Bitcoin fell more than 7% on Thursday, briefly dipping to $70,140 before stabilizing around $72,000. The move wiped out over $840 million in derivatives positions, with long traders bearing the brunt of the liquidations.
The broader crypto market is down 6.4% today, with Ethereum dropping 1.7% to $2,281. In total, roughly $900 billion has been erased from the crypto market over the past 22 days, pushing total capitalization down by approximately 25% from peak values.
The selloff has been attributed to a combination of macroeconomic factors and shifting risk appetite. President Trump's nomination of Kevin Warsh, a known hawkish voice, as the next Federal Reserve chair has raised concerns about tighter liquidity conditions ahead.
Rising geopolitical tensions between the United States and Iran have also driven investors toward traditional safe havens like gold, which rallied on Wednesday. This risk-off rotation has accelerated the crypto downturn as institutional investors reduce exposure to volatile assets.
The psychological $70,000 level remains the key support to monitor. A sustained break below could trigger further liquidations and push Bitcoin toward the $65,000 zone. Market analysts note that the current capitulation phase may need to exhaust before any meaningful recovery can begin. Traders are watching for stabilization signals and potential Fed commentary on monetary policy.
This is a developing story. Market conditions remain highly volatile as geopolitical and monetary policy concerns persist.
Wall Street giant Citigroup projects Bitcoin could reach $143,000 within 12 months, citing ETF demand and regulatory tailwinds as key catalysts.
The largest US bank is assessing spot and derivatives trading services as regulatory clarity enables traditional finance to deepen crypto involvement.
Senator Boozman postpones Digital Asset Market Clarity Act from January 15 to final week of January to secure bipartisan support.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
