Earthquake in Bitcoin (BTC)

Bitcoin (BTC), the largest cryptocurrency in terms of market value, lost 6.43% in the last 24 hours, falling to the $95,000 range. Starting the week on an upward trend and boosting investors' hopes for the new year, BTC and the cryptocurrency market led by it experienced a decline yesterday due to weak macroeconomic data from the US.

The sudden drop in BTC left investors waiting in a long position in the futures market at a loss. According to Coinglass data, a total of 692 million (631 million dollars in long positions and 60 million dollars in short positions) disappeared from the market in the last 24 hours.

It is possible to associate the decrease in value of Bitcoin with the panic atmosphere in the US stock markets. Indeed, the Dow Jones index lost 0.42 percent, the S&P 500 lost 1.11 percent, and the technology exchange Nasdaq lost 1.89 percent.

Markets in the shadow of negative data

The first weak macroeconomic data that shook both traditional and crypto markets came from the US Bureau of Labor Statistics' unexpected increase in open positions. While the market expectation was a decrease to 7.7 million, the number of open positions in November was announced as 8.1 million. Another negative data came from the ISM Purchasing Managers' Index related to the service sector. The December data of the index announced by the US Institute of Supply Management was 54.1, but the market expectation was 53.3.

The reason for the panic in both markets is the direct impact of negative data on the Federal Reserve's (Fed) monetary policy. After following a monetary tightening policy for three years, the Fed's interest rate cut was welcomed by the markets. The expectation for the new year in the markets is the continuation of monetary abundance. However, the negative data has raised questions about whether the Fed will put the brakes on interest rate cuts in the market.

The blood loss in Solana (SOL) is nearly 10 percent.

Other major cryptocurrencies also suffered from the drop in the crypto market in the past 24 hours. Ethereum's cryptocurrency Ether lost 9.41% and dropped to $3,330. XRP, which recently rose to the third-largest cryptocurrency in terms of market value, dropped 6.51% and returned to the $2.27 range. BNB lost 5.68%, while Solana (SOL) suffered a 9.54% decline and dropped to $194.

In the last 24 hours, the cryptocurrency with the biggest value loss was Fantom (FTM) with a 20% drop. Hyperliquid (HYPE) lost 17.25%, Ethena (ENA) lost 16.4%, Celestia (TIA) lost 16.39%, and Bonk (BONK) lost 15.68%.

This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making decisions.