Cryptocurrency prices have taken a significant hit, with Bitcoin, Ethereum, XRP, Dogecoin and Solana all taking big losses. After briefly reaching an all-time high of over $108,000, Bitcoin fell 7% in one day to $97,000. Ethereum fell almost 12% to trade at $3,422, while XRP saw a similar decline, down 11% to $2.22. Dogecoin, the popular meme coin, plummeted 20% to land at $0.31. Solana, another major altcoin, fell below the $200 mark, down 12% to $191. These losses are part of a larger correction in the crypto market, with the entire sector down 9%.
The downturn comes after Fed Chairman Jerome Powell's recent comments on inflation forecasts for 2025, which spooked markets. Powell's comments about inflation potentially being higher than expected and the likelihood that rates would remain high for longer led to a broad sell-off in risk assets, including cryptocurrencies. Meme coins like Dogecoin, known for their sensitivity to macroeconomic news, were particularly hard hit. Dogecoin's price plummeted 12.4% and trading volume increased 67%, indicating panic among holders. Despite this, Dogecoin remains one of the largest cryptocurrencies by market capitalization, with a value of $46.6 billion.
The market has also seen massive liquidations, with more than $1.2 billion worth of crypto holdings wiped out in just 24 hours. Long positions accounted for the bulk of the liquidations, totaling $1.07 billion. The largest liquidation order that took place at Binance was worth almost $16 million. Additionally, Binance saw outflows of $83 million, showing a broader trend of selling pressure on the exchanges.
Other cryptocurrencies, including XRP and Cardano, have also suffered significant losses. For example, XRP saw a 10% decline, while Cardano lost 15.7%. These declines were part of a broader downturn that affected most of the altcoin market. Meme coins such as Shiba Inu and Bonk also saw significant losses, down 23.3% and 22.5% respectively.
Despite the sell-off, some altcoins are still getting attention. A notable exception is Fartcoin, a meme coin that is up 71% in the past week and is up 323% this month. However, these gains are rare and the overall sentiment in the crypto market remains bearish. With Bitcoin falling below $100,000, the broader market is showing signs of fragility and analysts are keeping a close eye on further developments.
