Bitcoin lost its bullish track as its price dropped to a low of $97,207, with the 4% decline pulling the global crypto market cap down 4.5% to $3.44 trillion.

In the last 24 hours, total liquidations reached $388 million, with over $206 million occurring in just one hour. Most of these liquidations were from long and short positions across major exchanges.

Besides, the Bitcoin sell-off also casted its effect on altcoins, with Ethereum, XRP, and Solana all dropping over 5% in 24 hours. At the time, Bitcoin was around $97,664, Ethereum was near $3,475, XRP was at $2.32, and Solana was down to $208.

What Caused The Dip?

The sudden dip in Bitcoin that triggered a broader market sell-off, arrived in response to the latest U.S. macroeconomic data. As per the recent data from U.S. Bureau of Labor Statistics, in November 2024, JOLTS job openings increased by 259,000 to 8.1 million, signaling a strong labor market, which may limit Federal Reserve rate cuts in 2025. The increase was seen in sectors like professional services, finance, and education. 

“TLDR on why the market is dipping: US data came in hot, causing a bond yield spike. ISM index higher than expected, JOLTS job openings increased. We’re in the “good data is bad data” phase of the market for risk assets ahead of FOMC in 2 weeks.” Crypto analyst Miles Deutscher noted in an X post. 

Severe Correction Looming?

Additionally, the ISM Services PMI indicated a resilient US economy. However, this strength led to concerns about market conditions, leading to a drop in US stocks as economic data suggested the Fed might keep rates steady despite inflation.
Besides, Former BitMEX CEO Arthur Hayes has recently shared his bold prediction for the cryptocurrency market, stating that it will likely reach its peak by mid-March 2025, before experiencing a severe correction. His prediction came based on declining US dollar liquidity.