BTC, ETH, ADA, SOL Price News: Bitcoin Plunges Under $98,000, $880M in Liquidations

Bitcoin has recently experienced a notable decline, dropping below the $98,000 mark for the first time since May. This downturn comes amid broader market weaknesses, particularly influenced by disappointing economic data from China. As traders reacted to these developments, the cryptocurrency market saw significant sell-offs, reflecting a risk-off sentiment.

Bitcoin's Drop Below $98,000 Indicates Market Weakness

The drop in Bitcoin's price marks a critical moment for the cryptocurrency, as it signifies a break below a key psychological level. This decline extends a week-long trend of decreasing prices for major cryptocurrencies. Alongside Bitcoin, Ethereum also fell sharply, losing more than 8% to around $3,500. Other altcoins like XRP, Solana (SOL), and Cardano (ADA) followed suit, reflecting a general bearish trend across the market.

Massive Liquidations Signal Trader Frustration and Risk Aversion

Recent liquidation data highlights the extent of the market's turmoil, with over $1 billion in leveraged crypto positions being wiped out within just 24 hours. Approximately $887 million of this total came from long positions, indicating a significant level of trader frustration. About 235,000 traders found themselves forced out of their positions, with the largest single liquidation amounting to $44 million for a Bitcoin long on HTX. Major trading platforms such as Bybit, Hyperliquid, and Binance each reported liquidations exceeding $180 million in long positions, showcasing how aggressively traders had positioned themselves ahead of this decline.

Macro Economic Factors Contribute to Market Decline

Contributing to the market's downturn are broader macroeconomic factors, particularly concerning the Chinese economy. Recent data revealed a more significant slowdown in economic activity than anticipated, with industrial production growth dropping to 4.9% year-on-year from 6.5% in September. Additionally, fixed-asset investment in China contracted by 1.7% over the first ten months of the year, marking a historic slump. This disappointing economic news had an immediate impact on Asian equities, with the MSCI Asia Pacific Index declining by 1.3%. The weakness in traditional markets quickly spilled over into the cryptocurrency sector, as digital assets have increasingly mirrored the performance of high-risk equities.

Future of Crypto Depends on Macro Conditions Stabilizing

As traders reassess their positions heading into the year-end, the immediate question for cryptocurrency markets is whether the forced liquidations have reached their limit. Bitcoin's descent below $98,000 now shifts focus toward potential support levels, particularly near $94,000. The future trajectory of altcoins remains uncertain, especially if equity markets continue to falter. Historically, liquidation-driven resets have often indicated exhaustion zones, but whether this pattern will repeat depends largely on the stabilization of macroeconomic volatility in the coming days.

In summary, the current bearish trend in the cryptocurrency market, driven by significant liquidations and adverse macroeconomic factors, highlights the ongoing challenges faced by traders and investors. As the market navigates this turbulent period, the outlook will depend on how economic conditions evolve and whether traders can regain confidence in their positions.