Bitcoin Dips Below $100,000 as Ethereum Hits Four-Month Low, Sparking $2 Billion in Liquidations

• Bitcoin’s plunge below $100,000 marks a 5% daily drop and 10% weekly decline, erasing gains from recent highs.

• Ethereum leads losses with a 9% daily fall to $3,260, the lowest since July, outpacing other top cryptocurrencies.

• Total liquidations exceed $2.02 billion in 24 hours, with $1.63 billion from long positions, per CoinGlass data.

Bitcoin falls below $100,000 as Ethereum hits four-month low, sparking $2B liquidations. Explore the crypto market crash causes and recovery outlook now.

What Caused Bitcoin to Fall Below $100,000?

Bitcoin’s fall below $100,000 stems from broader market pressures, including a sharp decline in stock indices like the Nasdaq and S&P 500, driven by macroeconomic uncertainty. The cryptocurrency dipped as low as $99,075 on Tuesday, according to CoinGecko data, after trading above the psychological threshold for six months. This movement reflects heightened trader anxiety following recent volatility, with Bitcoin now down nearly 20% from its all-time high of over $126,000 in early October.

How Has Ethereum’s Price Drop Impacted the Crypto Market?

Ethereum’s plunge from $3,649 to $3,097—the lowest since July—has amplified the market downturn, accounting for $655 million in liquidations compared to Bitcoin’s $614 million, based on CoinGlass figures. This 9% daily loss exceeds Bitcoin’s decline and surpasses losses in altcoins like XRP, Solana, and BNB. Experts attribute the drop to overleveraged positions and lingering effects from October’s record $19 billion liquidations. Maja Vujinovic, co-founder and CEO of digital assets at Ethereum treasury firm FG Nexus, notes, “Too many traders were using borrowed money to bet on prices going up.” Short sentences highlight the rapid unwind: long positions dominated losses at $1.63 billion of the total $2.02 billion liquidated. While substantial, this figure remains below October’s peak, signaling trader caution. The event echoes broader economic concerns, including trade tensions and interest rate expectations, underscoring Ethereum’s sensitivity to leverage in uncertain times.

Frequently Asked Questions

What triggered the $2 billion crypto liquidations in the last 24 hours?

The liquidations were primarily triggered by Bitcoin’s breach below $100,000 and Ethereum’s sharp decline to a four-month low, forcing the closure of overleveraged positions. Data from CoinGlass shows $1.63 billion in long bets wiped out, as prices fell amid stock market weakness and macroeconomic fears, impacting traders who borrowed to speculate on rises.

Will Bitcoin recover above $100,000 soon?

Bitcoin’s recovery above $100,000 depends on its ability to hold key support levels around $100,000 to $105,000, as suggested by market observers. Currently trading at $101,167 after a brief rebound from $99,000 lows per CoinMarketCap, the asset faces weekly losses over 10%. Sustained buying from big investors could stabilize it, but ongoing economic shakiness poses risks of further dips.

Key Takeaways

• Market Volatility Persists: Bitcoin’s 5% daily and 10% weekly drop below $100,000 highlights ongoing uncertainty, down 20% from October highs.
• Ethereum Bears the Brunt: With a 9% plunge to $3,260 and leading liquidations at $655 million, ETH’s fall exceeds top altcoins, tied to high leverage exposure.
• Trader Caution Advised: Mike Maloney, CEO of tech provider Incyt, warns of anxiety reminiscent of October’s “Black Friday,” urging big investors to watch for buying opportunities amid shaky sentiment.

Conclusion

The recent Bitcoin fall below $100,000 and Ethereum’s steep price drop have unleashed over $2 billion in liquidations, underscoring the crypto market’s vulnerability to macroeconomic shifts and overleveraged trading. Data from sources like CoinGecko and CoinGlass reveal a correction phase, with Bitcoin at $101,167 and Ethereum at $3,260 after hitting multi-month lows. As Maja Vujinovic emphasizes, the coming days will be pivotal for stabilization above key thresholds. Investors should remain vigilant, monitoring trade policies and interest rate signals for signs of rebound. Stay informed on these developments to navigate the evolving landscape effectively.

The cryptocurrency market experienced a significant downturn on Tuesday, exacerbating losses from earlier in the week. Bitcoin, the leading digital asset, breached the $100,000 barrier for the first time since mid-2024, dipping to $99,075 as reported by CoinGecko. CoinMarketCap data corroborates this, showing a nadir just under $99,000 before a partial recovery. At press time, Bitcoin trades at approximately $101,167, reflecting a 5% daily decline. Over the past seven days, the asset has shed more than 10% of its value, and it now sits nearly 20% below its peak of over $126,000 achieved in early October.

Ethereum faced even steeper pressures, tumbling from a 24-hour peak of $3,649 to $3,097, its lowest level since July. Recently priced at $3,260, ETH has lost over 9% in the day, outperforming downward moves in the top 10 cryptocurrencies by market capitalization. Altcoins such as XRP, Solana, and BNB posted notable daily losses, though none matched Ethereum’s severity. This collective slide contributed to widespread liquidations, totaling $2.02 billion in the last 24 hours according to CoinGlass. Of this, $1.63 billion stemmed from long positions—trades anticipating price increases—highlighting the risks of leveraged betting in volatile conditions.

Ethereum dominated the liquidation tally with $655 million, edging out Bitcoin’s $614 million. Earlier in the session, Bitcoin held the lead after its initial sub-$100,000 drop. While $2 billion represents a hefty sum, it trails the staggering $19 billion record from October, suggesting some market participants have adopted more conservative strategies post that event. “This is an echo of Black Friday (October 10),” remarked Mike Maloney, CEO of tech provider Incyt. “The sudden drop was quickly reversed, but anxiety remains in large investors.”

The crypto rout aligned with declines in traditional markets, where the Nasdaq and S&P 500 closed lower amid tech sector hits and overarching economic worries. Contributing factors include ongoing U.S. trade disputes under President Trump, with recent threats toward China preceding October’s liquidation surge. Liquidity issues and doubts about a potential third Federal Reserve interest rate cut in 2025 further fuel pessimism. These elements combine to create a cautious environment for digital assets.

Looking deeper, the liquidation mechanics reveal trader overexposure. Many entered positions using borrowed funds, betting on continued upward momentum from Bitcoin’s post-election rally. When prices reversed, margin calls triggered automated sales, amplifying the fall. Vujinovic advises, “The next few days matter: If Bitcoin can stay above $100k-$105K, it might simply be a healthy reset. If not, we could see a deeper drop. Big investors and companies should be cautious but also watch for smart buying opportunities, since the broader economy and market mood are still shaky.”

Historical context shows crypto markets often rebound from such corrections, but timing remains uncertain. October’s “Black Friday” saw a swift reversal after initial panic, yet lingering effects persist. Current data from CoinMarketCap and CoinGecko indicate stabilizing volumes, but external pressures like stock market correlations could prolong the downturn. Institutional players, having accumulated during prior dips, may view this as an entry point if support holds.

For Ethereum specifically, its role as a smart contract platform amplifies price sensitivity to network activity and investor sentiment. The drop to July levels erodes recent gains, potentially delaying upgrades or adoption milestones. However, with $655 million in liquidations clearing weak hands, remaining holders might benefit from a cleaner slate. Analysts monitor on-chain metrics for signs of accumulation, which could signal an upturn.

Broadening the view, the $2 billion liquidation event, while disruptive, underscores crypto’s maturation. Compared to past cycles, responses appear more measured, with fewer panic sells. Sources like CoinGlass track these flows in real-time, aiding transparency. As markets digest Tuesday’s bloodbath, focus shifts to upcoming economic data releases, which could influence Federal Reserve decisions and, by extension, risk assets like cryptocurrencies.

Additional reporting by James Rubin highlights interconnected global factors, including European market reactions to U.S. policy shifts. Overall, this episode serves as a reminder of crypto’s ties to traditional finance, urging diversified strategies. Investors tracking Bitcoin below $100,000 levels should prioritize risk management, eyeing potential resets as opportunities rather than setbacks.