Bitcoin Plunged Hard Ahead of FOMC Minutes—Why Crypto Market is Down Today?
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The Bitcoin price dropped hard, close to $96,000, driving the market below its support levels.
As BTC price faced a 5.46% plunge, Ethereum price marked an 8.97% drop, trading at $3,348 while XRP & SOL recorded 4.25% & 9.12% loss, respectively. Dogecoin & Cardano also faced massive pullbacks of over 10% & 9%, with the other altcoins marking a similar pullback. The global trading volume has reached above $170 billion with a rise of over 33.12%, while the market capitalisation dropped to $3.36 trillion, a 6.38% squeeze.
What went wrong? Why are crypto markets plunging hard?
Two prominent events are scheduled for a short while now: ADP Nonfarm Employment and the FOMC minutes. While ADP is a sneak peek into the labour market’s health, setting the tone before the big reveal, the FOMC minutes dive into the minds of the Fed. It sheds light on their perspective about the rates that will have an impact on the BTC price.
What’s next for the BTC price and the entire market? Considering the liquidations, they have again reached the peak of around $558 million in long, with Bitcoin alone recording close to $100 million. However, the pressure has not waned yet as the tokens continue to face equally for either side.
The above liquidation heatmap by Coinglass suggests the bears are setting up shorts at interesting levels. If the Bitcoin price rebounds to $98,600, then over $35 million will be liquidated, and if it further reclaims levels above $103,300, then more than $66 million will receive the same fate. In short, the traders still appear to be either pessimistic or are unsure of the sustainability of the start token. However, the volatility rollercoaster is always good to maintain a healthy trend and hence, a potential drop is expected to attract significant volume onto the platform.
The start of 2025 has been recorded as one of the most bullish one’s in recent history, with Bitcoin, Ethereum, & other altcoins managing to hold above the pivotal range. Regardless of the corrections, some of the altcoins, like XRP, XLM, BNB, etc., and a few more are demonstrating strength, suggesting a rebound could be nearby. Meanwhile, the BTC dominance continues to remain within daire straits, which indicates a potential altseason may also be on the horizon.
