The cryptocurrency market has seen a sharp sell-off in recent hours. Bitcoin (BTC) has fallen below $97,000, down over 5% in the last 24 hours.
The downtrend wasn’t limited to Bitcoin and spread to altcoins as well. Ethereum (ETH) fell 9.1% to $3,180, Ripple (XRP) fell 6.6% to $2.30, Solana (SOL) fell 8% to around $142, Binance Coin (BNB) fell 5%, Dogecoin (DOGE) fell 6.3%, and Cardano (ADA) fell 7.4%.
The decline is attributed to the prolonged shutdown of the US federal government, which prevented the Fed from reaching key economic indicators.
The decline is driven by the growing likelihood that the Fed will hold interest rates steady in December. As investor confidence eroded, Bitcoin fell back below $100,000, and riskier assets experienced a major correction.
Liquidation pressure in the futures market also increased simultaneously, amplifying losses.
According to Coinglass data, the majority of the liquidations over the past 24 hours came from long positions. A total of $891 million in long positions were liquidated, while $132 million in short positions were liquidated.
The data predicts that if Bitcoin falls below $95,000, long liquidity on major centralized exchanges (CEX) could reach $723 million. Conversely, if Bitcoin rises above $99,000, short liquidity is estimated to be around $718 million.
