Interest Rate Fears Weigh on Bitcoin as Prices Slide Toward $90K, Other Cryptocurrencies Decline Sharply
The post Interest Rate Fears Weigh on Bitcoin as Prices Slide Toward $90K, Other Cryptocurrencies Decline Sharply appeared on BitcoinEthereumNews.com.
As market anxieties surrounding sustained high U.S. interest rates intensified, Bitcoin suffered a sharp decline, impacting the wider cryptocurrency sector. The fear of interest rates remaining elevated through 2025 contributed to a tumultuous trading environment, with investors fleeing from riskier assets. According to latest data from COINOTAG, “The drastic sell-off reflects a growing sentiment that the current monetary policy may not favor risk assets for the foreseeable future.” Bitcoin’s price stability wavers amid interest rate concerns, impacting the broader crypto market as major digital currencies see significant drops. Bitcoin’s Price Plummets Amid Interest Rate Woes The cryptocurrency market witnessed significant turbulence on Monday, chiefly driven by investor apprehension regarding prolonged high interest rates in the United States. Bitcoin hit a low of $90,198, marking its lowest trading point since November and reflecting a staggering drop of approximately 16% from its all-time high of over $108,000 achieved in December. This dramatic decline demonstrates how swiftly market dynamics can shift, particularly in the volatile sphere of cryptocurrencies. Despite a brief surge above the $100,000 threshold last week, Bitcoin has spiraled downward due to a series of mixed economic indicators that sparked investor trepidation. Impact on Major Altcoins: Ethereum, XRP, and Others Other cryptocurrencies experienced even more pronounced losses, surging tensions in the market. Ethereum fell over 7%, dropping to $3,044, while XRP declined nearly 6% to $2.37. Solana and Dogecoin also faced considerable dips, with prices falling to $175 and $0.317, respectively. Such declines highlight a broader trend in the crypto market where investor sentiment is heavily influenced by external economic factors. Liquidations Surge as Fear Grips Traders The wave of liquidations on cryptocurrency futures contracts amplified the downward pressure on prices. In just the last 24 hours, approximately $544 million in positions were liquidated, predominantly from long positions, which amounted to…
Filed under: News - @ January 13, 2025 4:27 pm