Cryptocurrency prices are plunging across the board early Tuesday, led by major assets like Bitcoin, Dogecoin and Solana, as new economic data appears to send a shiver across both the crypto and stock markets.
Bitcoin fell from a price of almost $101,000 to a current price of $97,856, marking a dip of more than 4% on the day. Ethereum and Dogecoin, meanwhile, are both down around 7% on the day, with Solana close behind with a 6% decline.
Hotter-than-expected job vacancy data in the United States appears to have played a role, along with the fact that investors are no longer pricing in a Federal Reserve rate cut in the first half of 2025.
Crypto liquidations rose as a result of the market correction, with $385 million worth of long and short positions wiped out in the past 24 hours, according to CoinGlass data. Some $230 million came in in the last four hours alone, with long positions accounting for the vast majority of the liquidations, at $212 million.
The digital asset market has largely benefited from low interest rates as cryptocurrencies often experience more volatile price movements.
The US central bank aggressively raised interest rates in 2022 in an effort to curb inflation following the COVID-19 pandemic, making Bitcoin less attractive to investors.
But Bitcoin – along with stocks – soared last year thanks to the Fed’s moves to finally lower borrowing costs. US stocks also experienced upward price movements.
In December, Bitcoin hit a new all-time high of $108,135. Trump winning the presidency and the adoption of spot Bitcoin ETFs in the US also played a major role in the cryptocurrency’s rising prices.
Federal Reserve Chairman Jerome Powell warned in December that the central bank would not aggressively cut spending further. He said his team would be “more cautious as we consider further adjustments to our policy rate.”
Edited by Andrew Hayward
Editor’s note: This story was updated with additional details after publication.
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