Crypto Market Faces Over $500M Liquidations as Bitcoin, Ethereum, XRP Drop

Bitcoin and the broader cryptocurrency market experienced significant declines recently, with Bitcoin falling below $109,000 and Ethereum dropping over 6% to nearly $4,295. This downturn has been driven by new inflation data, profit-taking, and a weakening of key support levels such as Bitcoin's $112,000 mark, causing a wave of liquidations totaling over $446 million across crypto assets. Analysts predict further corrections, with some expecting Bitcoin to potentially drop to $100,000 and Ethereum to levels around $3,700, prompting caution among traders to avoid long positions until clearer breakout signals emerge. The decline in Bitcoin has also triggered a synchronized drop in altcoins like XRP and Dogecoin, reflecting the interconnectedness of the crypto market and the influence of Bitcoin as a bellwether asset. Additionally, macroeconomic pressures and a strengthening U.S. dollar have compounded bearish sentiment, contributing to over $530 million in Bitcoin liquidations within a 24-hour period and pushing the total crypto market capitalization below $1.05 trillion. Market observers note increased volatility fueled by retail investors shifting to defensive positions, while institutional buying interest remains subdued.