Bitcoin dropped below $100,000 before recovering slightly following hints from the Federal Reserve about potential rate cuts in 2025. Jerome Powell, Fed chair, stated that the central bank isn't permitted to own bitcoin under current regulations. Former President Trump, during his campaign, promised to retain all bitcoin held or acquired by the government. Following Powell's comments, Bitcoin fell 3%, dragging down other cryptocurrencies. The market decline resulted in over $700 million in liquidations, with altcoins and meme tokens experiencing proportionally larger losses compared to Bitcoin and Ethereum.
BTC fell under $100,000 in late U.S. hours before slightly recovering during early Asian hours Thursday, as the Federal Reserve hinted at a few rate cuts in 2025.A bitcoin slump spiraled into over $700 million worth of liquidations across futures tracking major tokens, with XRP and dogecoin products recording unusually high losses.
"That's the kind of thing that Congress should consider, but we are not looking for a law change," Powell said. In a July campaign, Trump said the government would keep 100% of all the bitcoin it currently holds or acquires in the future under his administration — referring to the stockpile of seized BTC held by the country.
The market slide led to over $700 million in bullish bets liquidated, with futures tracking smaller altcoins and meme tokens recording higher losses than BTC or ETH futures in an unusual move, data shows.A liquidation occurs when an exchange forcefully closes a trader's leveraged position due to the trader's inability to meet the margin requirements. Large-scale liquidations can indicate market extremes, like panic selling or buying.
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