The post Bitcoin Slips to $98,000 Amid Market Sell-Off and Declining Activity appeared on BitcoinEthereumNews.com.

Bitcoin has dropped below the $100,000 threshold as the broader crypto market experiences heightened volatility. This downturn coincides with a significant decline in transaction activity on the Bitcoin network, bringing memory pool (mempool) volume to its lowest level since March 2024. Market Downturn Wipes Out Over $500 Million in Liquidations Over the past 24 hours, Bitcoin fell below $100,000, shedding over 4% of its value and briefly touching $98,000. Data from BeInCrypto indicates that Bitcoin initially peaked at $102,000 before succumbing to selling pressure. The decline follows broader market instability, with the total crypto market cap losing 5% of its value. Other major cryptocurrencies also faced steep declines. Ethereum, Solana, and BNB each recorded losses exceeding 7%. The increased volatility triggered a liquidation spree, wiping out over $555 million in leveraged positions, according to CoinGlass. More than 239,000 traders faced forced liquidations, with long traders—those betting on price increases—suffering the heaviest losses, amounting to $491 million. Short traders, anticipating price declines, lost approximately $63 million. Crypto Market Liquidation. Source: Coinglass The turmoil follows US President Donald Trump’s decision to enforce stringent tariffs on major trading partners, including Canada. The administration claims the move is designed to curb the flow of undocumented immigrants and illicit substances into the US. However, the tariffs have sparked concerns about inflationary pressure on American consumers. In response, Canadian Prime Minister Justin Trudeau announced retaliatory measures, imposing 25% tariffs on $106 billion worth of American imports. The first round of levies, targeting $30 billion in goods, will take effect immediately, with an additional $125 billion in tariffs scheduled in the coming weeks. Bitcoin Network Sees Sharp Drop in Transactions Beyond market turbulence, Bitcoin’s network activity has declined significantly, with the mempool—the waiting area for unconfirmed transactions—showing a notable reduction in volume. On February 1, data from…

---

Filed under: News - @ February 2, 2025 2:27 pm