**Bitcoin Falls Below $100,000 as Ethereum Hits Four-Month Low, Sparking $2 Billion Liquidations**
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, Bitcoin has lost more than 10% of its value and 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 also 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 data. 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.
While $2 billion represents a hefty sum, it still trails the staggering $19 billion record from October, suggesting some market participants have adopted more conservative strategies following 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.”
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### What Caused Bitcoin to Fall Below $100,000?
Bitcoin’s slide below $100,000 stems from broader market pressures, including sharp declines in stock indices like the Nasdaq and S&P 500, driven by macroeconomic uncertainty. The cryptocurrency dipped as low as $99,075 on Tuesday, 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.
Contributing factors include ongoing U.S. trade disputes, recent threats toward China, liquidity concerns, and doubts about a potential third Federal Reserve interest rate cut in 2025. These elements combine to create a cautious environment for digital assets.
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### 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. It accounted 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 Ethereum’s 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.”
The rapid unwind is underlined by the fact that long positions dominated losses, comprising $1.63 billion of the total $2.02 billion liquidated. While substantial, this figure remains below October’s peak, signaling greater trader caution.
Ethereum’s 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.
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### 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, the asset faces weekly losses exceeding 10%. Sustained buying from large investors could stabilize prices, but ongoing economic shakiness poses risks of further dips.
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### 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 and is tied to high leverage exposure.
– **Trader Caution Advised:** Mike Maloney, CEO of Incyt, warns of anxiety reminiscent of October’s “Black Friday,” urging big investors to watch for buying opportunities amid shaky sentiment.
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### Conclusion
The recent fall of Bitcoin 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 CoinGecko and CoinGlass reveal that the market is in a correction phase, with Bitcoin stabilizing at around $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. This episode serves as a reminder of cryptocurrencies’ ties to traditional financial markets and the need for diversified strategies and careful risk management.
Stay informed on these developments to navigate the evolving crypto landscape effectively.
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*Additional reporting by James Rubin*
https://bitcoinethereumnews.com/bitcoin/bitcoin-dips-below-100000-as-ethereum-hits-four-month-low-sparking-2-billion-in-liquidations/