Bitcoin prices fell sharply on Wednesday, briefly slipping below the $100,000 mark amid sustained selling pressure in the spot market. The decline in cryptocurrency prices mirrored a broader sell-off in risk assets, as mounting concerns over stretched valuations weighed on investor sentiment.
The world’s largest cryptocurrency, Bitcoin prices traded 3.7% lower at $101,822 after earlier dropping to $99,010.06 — its weakest level since mid-June. Ethereum price was down 6.76% to $3,331.65, while Solana price traded 3.16% lower at $157.66. XRP price fell 3.16% to $2.24 and Dogecoin price was down 1.47% to $0.165.
Bitcoin prices have has now entered bear market territory, having fallen more than 20% from its record high of $126,186 reached in early October.
$1.3 Billion Liquidation Spree
The latest decline in Bitcoin prices followed data from analytics firm CoinGlass, which showed that over $1.27 billion in leveraged crypto positions were liquidated earlier this week. Most of these liquidations involved long positions, as traders betting on continued price gains faced steep losses.
In total, nearly $2 billion in crypto positions were wiped out over the past 24 hours — modest compared to the $19 billion in forced unwinds seen during last month’s crash. Open interest in Bitcoin futures remains muted, while options traders are increasingly betting on further downside through put contracts targeting the $80,000 level, according to Bloomberg.
Broader Market Sell-Off
Bitcoin price fall also coincided with a broader risk-off sentiment across global markets, as fears of an artificial intelligence-fueled bubble in equity valuations triggered heavy selling.
US stock market fell sharply on Tuesday after CEOs of several major Wall Street banks warned of a potential near-term correction. The Dow Jones Industrial Average declined 251.44 points, or 0.53%, to 47,085.24, while the S&P 500 fell 80.42 points, or 1.17%, to 6,771.55. The Nasdaq Composite ended 486.09 points, or 2.04%, lower at 23,348.64.
Asian markets followed suit, with Japan’s and South Korea’s benchmark indices each slipping around 5%.
(With inputs from Bloomberg)
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