The crypto market is experiencing another bearish drawdown, with the price of Bitcoin (BTC), XRP, and Dogecoin (DOGE) in the spotlight. Amid this mild route, the combined crypto market cap has dropped by 2.06% to $3.43 trillion. In addition, the crypto liquidation trend shows a potential weekend crash is imminent.
Leading the altcoin drop, Bitcoin price is at risk of falling below the $100,000 psychological level. The coin has already made history as it recorded its first monthly close above $100,000. Despite the mild consolidation in the market, buyers are making a profit at the moment.
As of writing, the BTC price was changing hands for $100,579.67, down by 1.69% in 24 hours. The coin has traded around a very tight range from a low of $100,542 to a high of $102,755 before the selloff.
Notably, this outlook has fueled a combined crypto liquidation of $382.51 million per Coinglass data.
Notably, this figure is less than the earlier $1.1 billion crypto liquidation, which dragged BTC from a high of $108,000 to $95,587.68. However, traders are on high alert, and Bitcoin is co-leading the liquidation trend with $57 million.
Altcoins are not spared from the growing drawdown in the general market. While Ethereum leads the single asset liquidation with $72.12 million, XRP and Dogecoin arguably suffered more price falls.
XRP had a spot price of $2.884, down 6.02% as of writing. Dogecoin nosedived 7.31% to $3079 with an $11.89 million in crypto liquidation. Despite Bitcoin commanding a bigger market share, the price of these altcoins has shown their strong dependency on the coin.
The reasons for the drop in BTC price may be speculative; mild leverage build-up appears to be moving against futures traders. Coinglass data shows that Bitcoin Open Interest is pegged at 631,140 BTC, worth $63.56 billion. This proves how exposed futures traders are, requiring cools.
Meanwhile, altcoins are merely responding per their strong correlation with Bitcoin price. Per an earlier DOGE price analysis, there is hope for building a strong resistance around the $0.3 mark. This optimistic forecast comes as traders weigh in on Elon Musk’s $1 billion D.O.G.E update.
The price of Bitcoin recorded a $109,114 all-time high shortly after the inauguration of President Donald Trump. Thus far, the outlook for BTC and the broader crypto industry looks promising under the new administration.
Having appointed Mark Uyeda as acting chair of the US Securities and Exchange Commission (SEC), the outlook per regulatory policies has shifted. The agency even approved Bitwise Bitcoin and Ethereum ETF product, a sign of relaxed scrutiny.
With these changing dynamics, the current selloff in BTC price might turn out as a temporary offset, and the market will shake up in the short term.
