In a shocking turn of events, Bitcoin's bullish momentum took a nosedive as its price plummeted to a staggering low of $97,207, reflecting a steep 4% decline. This downturn has rippled through the cryptocurrency market, dragging the total market capitalization down by 4.5%, now sitting at $3.44 trillion.

In a dramatic twist, the past 24 hours saw an eye-popping total liquidation figure reaching $388 million, with a jaw-dropping $206 million occurring in a mere one hour! This massive liquidity crunch predominantly affected long and short positions across major cryptocurrency exchanges.

But that’s not all—the market chaos didn’t spare altcoins either. Ethereum, XRP, and Solana faced severe blows, each dropping over 5% within this turbulent period. As Bitcoin hovered around $97,664, Ethereum was trading near $3,475, XRP plummeted to $2.32, and Solana fell to $208.

What Triggered This Abrupt Decline?

The dramatic dip came on the heels of troubling new macroeconomic data released by the U.S. Bureau of Labor Statistics. In November 2024, job openings surged by 259,000, reaching a total of 8.1 million, which indicates a robust labor market. This surge raised concerns that the Federal Reserve may hold off on interest rate cuts in 2025, stirring unease among investors.

"TL;DR on why the market is dipping: US data came in hot, causing a spike in bond yields. The ISM index exceeded expectations, and JOLTS job openings increased significantly. We’re witnessing the ‘good data is bad data’ phenomenon affecting risk assets as we approach the Federal Open Market Committee (FOMC) meeting in two weeks," warned prominent crypto analyst Miles Deutscher in a post on X.

Is a Severe Correction on the Horizon?

Many analysts are raising alarms over a potential severe market correction, suggesting that this dip could be the beginning of a more significant trend. Traders are advised to exercise caution as the market reacts to economic indicators and shifting investor sentiment.

Stay tuned as we continue to monitor the cryptocurrency market, and brace yourself for what could be another wild ride! Will Bitcoin recover, or are we on the verge of further declines? Only time will tell!