Skip to content
Crypto News Focus logo CNF_CRYPTO_NEWS_FOCUS_LOGO 8

Crypto News Focus

your day to day crypto news site

Primary Menu
  • Home
  • News
    • Bitcoin News
    • Ripple XRP news
    • Ethereum News
    • Cardano News
    • Shiba Inu News
    • Pi Network News
    • More
  • Analysis
  • PR Desk
  • About Us
  • General Policy & Privacy
  • Guides
    • Bitcoin Guides
    • Pi Network Guide
    • Cardano Guide
  • Politics
  • Tech
  • Home
  • News
  • Crypto Market Crashed on U.S. Treasury and inflation Concerns- Bitcoin Falls Below $96K, XRP, DOGE & ETH Affected
  • Analysis
  • News

Crypto Market Crashed on U.S. Treasury and inflation Concerns- Bitcoin Falls Below $96K, XRP, DOGE & ETH Affected

Sean Williams 7 January 2025
Bitcoin Price chart in the background
  • Bitcoin’s price fell below $98,000 after reaching $102,000, triggered by strong U.S. labor market data that reduced expectations of Federal Reserve rate cuts, leading to $400 million in market liquidations.
  • Despite the sharp decline, investor sentiment remains optimistic, with the Fear and Greed Index rising to 66, signaling continued confidence in Bitcoin’s long-term prospects.

The cryptocurrency market faced a dramatic downturn as Bitcoin (BTC) plummeted below $98,000, triggering massive liquidations worth $400 million in just 24 hours. While the pullback has shaken short-term investors, long-term sentiment remains optimistic, hinting at potential rebounds in the near future.

The Crash: A Hard Stop at $102K

Bitcoin, which recently reached a high of $102,000, faced strong resistance and tumbled to a daily low of $97,153 before slightly recovering to $97,785.84, marking a 4.27% drop in a single day. This significant correction also pulled Bitcoin’s market capitalization below the $2 trillion mark, now sitting at $1.93 trillion with a 56.4% market dominance.

The sell-off comes on the heels of robust U.S. labor market data. Increased job openings, as reported by the JOLTS report, and a stronger-than-expected ISM Services PMI indicate an improving U.S. economy. This diminishes the likelihood of Federal Reserve rate cuts in 2025—a development that traditionally boosts Bitcoin’s appeal to investors.

Massive Liquidations Shake the Market

Data from Coinglass revealed that $381.56 million was liquidated in the last 24 hours, with long positions accounting for a staggering 87% of the losses. Of this, $240 million was wiped out in the past four hours alone. These figures underscore the volatility and risk that characterize the cryptocurrency market, especially during macroeconomic shifts.

Bullish Sentiment Persists

Despite the sharp decline, market sentiment remains surprisingly upbeat. The Crypto Fear and Greed Index has climbed to 66 (greed) from last week’s neutral level of 48. This indicates that many investors view the dip as a buying opportunity rather than a signal of further downturns.

Additionally, optimism stems from the broader bullish trend and strong demand from institutional investors. The recent inflow of $987 million into U.S. spot Bitcoin ETFs showcases sustained confidence in Bitcoin’s long-term potential.

What’s Next for Bitcoin?

While the immediate pullback has dampened short-term gains, analysts believe Bitcoin could retest the $100K-$102K resistance level if it finds support between $96K and $97K. Investor sentiment and macroeconomic factors, such as the inauguration of President-elect Donald Trump and future Fed rate decisions, will play a crucial role in shaping Bitcoin’s trajectory in the coming weeks.

The cryptocurrency market remains unpredictable, but one thing is clear—Bitcoin’s journey to mainstream adoption is far from over. Whether it rebounds swiftly or faces further turbulence, the world’s largest cryptocurrency continues to dominate headlines and investor portfolios alike.

Bottom Line


Bitcoin’s dip below $98K is a stark reminder of the market’s volatility, yet the resilience of bullish sentiment suggests brighter days ahead for this digital asset. For seasoned investors, this correction may simply be another chapter in Bitcoin’s ongoing narrative of highs and lows.

Continue Reading

Previous: Bitcoin Dips Below $98K: What’s Behind the Slide?
Next: Ripple and Chainlink Join Forces to Accelerate RLUSD Stablecoin Adoption

Related Stories

Monero XMR Highlight_simple_compose
  • Analysis

Monero XMR Is Heating Up Aiming $500 Now After Bullish Surge

Simon Njenga 3 June 2025
shiba inu
  • Analysis

Shiba Inu’s Massive Token Burn Sparks Hopes for 500% Price Rally

Jane Kariuki 3 June 2025
dogecoin on marbles
  • Analysis

Dogecoin Under $0.25: Smart Buy or Risky Bet?

Dennis Gatheca 3 June 2025

For general inquiries, please email us at Info@cryptonewsfocus.com

Crypto news focus is your day-to-day crypto news site. Get all the latest News and trends in the crypto, blockchain, and DeFi space. For more info and inquiries, reach out via email at info@cryptonewsfocus.com

You may have missed

Monero XMR Highlight_simple_compose
  • Analysis

Monero XMR Is Heating Up Aiming $500 Now After Bullish Surge

Simon Njenga 3 June 2025
shiba inu
  • Analysis

Shiba Inu’s Massive Token Burn Sparks Hopes for 500% Price Rally

Jane Kariuki 3 June 2025
dogecoin on marbles
  • Analysis

Dogecoin Under $0.25: Smart Buy or Risky Bet?

Dennis Gatheca 3 June 2025
Litecoin coins
  • Guide

How to Keep Your Litecoin Secure with Simple Safety Tips

Jane Kariuki 3 June 2025

Social Media

Crypto News Focus © All rights reserved | MoreNews by AF themes.
Go to mobile version
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok