Bitcoin Dips Below $100K Amid Market Sell-Off
Bitcoin (BTC) experienced a significant price drop, falling below the $100,000 mark amidst increased market volatility and a sharp decline in network activity. This downturn follows broader market instability, impacting major cryptocurrencies like Ethereum, Solana, and BNB.
Market Downturn and Liquidations
Over the past 24 hours, Bitcoin's value decreased by over 4%, briefly touching $98,000 after peaking at $102,000. This sell-off resulted in over $555 million in liquidations, affecting more than 239,000 traders. Long traders, betting on price increases, bore the brunt of the losses (~$491 million), while short traders lost approximately $63 million.
This market volatility coincides with US President Donald Trump's decision to impose tariffs on major trading partners, raising inflationary concerns and prompting retaliatory measures from Canada.
Bitcoin Network Activity Plummets
Simultaneously, Bitcoin's network activity has significantly decreased. The mempool, where unconfirmed transactions wait, shows near-empty levels, indicating a dramatic drop in transaction volume—the lowest since March 2024. Transaction fees have also fallen to 1 sat/vB, reflecting reduced demand for block space.
This decline raises questions about Bitcoin's role as a transactional currency, with some analysts suggesting that its increasing adoption as a store of value might be discouraging its use as a medium of exchange. Concerns exist about the potential long-term implications of this reduced on-chain activity.
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Disclaimer: This content is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult with a professional before making any investment decisions.