The cryptocurrency market continued to correct on Friday, with the price of Bitcoin (BTC) falling from around $100,600 to $92,000, a 9% decrease in the past 24 hours. By the time of deadline, the Bitcoin trading price had slightly rebounded to $94,000.
Altcoins experienced more severe declines, with Ethereum (ETH) dropping from $3,600 to $3,100 at one point, marking a 12% decrease in the past 24 hours. Ripple (XRP), Binance Coin (BNB), and SOL also saw declines of approximately 10%, 8%, and 12% respectively. Due to Bitcoin’s relatively smaller decrease, its market dominance briefly rose to 60%.
The correction today also triggered a large-scale liquidation in the derivatives market. According to Coinglass data, approximately 428,000 people worldwide were liquidated in the last 24 hours, with a total liquidation amount of $1.4 billion, of which $1.2 billion were long positions.
As reported by ZOMBIT earlier, the Federal Reserve in the United States predicted at this week’s FOMC meeting that the pace of interest rate cuts next year would slow down, with possibly only two cuts expected. Disappointing interest rate prospects have led to selling pressure on Bitcoin as a risk asset, causing overall weakness in the market. Since the end of the FOMC press conference, Bitcoin has fallen by approximately 11%.
The weakening market confidence is also reflected in the performance of cryptocurrency exchange-traded funds (ETFs). According to data from SoSoValue, the U.S. Bitcoin spot ETF recorded a net outflow of $680 million on Thursday, setting a new record for single-day outflows and ending a trend of 15 consecutive days of net inflows.
Performance of the top ten cryptocurrencies by market capitalization (Source: CoinMarketCap)
