Cryptocurrency prices are plunging across the board early Tuesday, led by major assets like Bitcoin, Dogecoin and Solana, as new economic data appears to send a chill to crypto and stock markets.
Bitcoin plunged from a price of nearly $101,000 to a current price of $97,856, showing a decline of over 4% on the day. Ethereum and Dogecoin, meanwhile, both fell around 7% on the day, with Solana following closely behind with a 6% drop.
Data warmer than expected on job offers in the United States appears to have played a role, alongside investors no longer factor in a drop in interest rates of the Federal Reserve in the first half of 2025.
Cryptocurrency liquidations surged following the market correction, with $385 million in long and short positions destroyed in the past 24 hours, data from CoinGlass. Some $230 million was collected in the last four hours alone, with long positions making up the vast majority of liquidations at $212 million.
The digital asset market has largely benefited from low interest rates, as cryptocurrencies tend to experience more volatile price movements.
In 2022, the US central bank aggressively raised interest rates in an attempt to control inflation in the wake of the COVID-19 pandemic, making Bitcoin less attractive to investors.
But Bitcoin, along with stocks, soared last year thanks to moves by the Fed to finally lower the cost of borrowing. US stocks also saw a price rise.
In December, Bitcoin hit a new all-time high of $108,135. Trump’s victory as president and the approval of spot Bitcoin ETFs in the United States also played a significant role in the cryptocurrency price surge.
Federal Reserve Chairman Jerome Powell warned in December that the central bank would not make further aggressive cuts, saying his team would be “more cautious as we consider further adjustments to our policy rate.”
Edited by Andrew Hayward
Editor’s note: This story was updated after publication with additional details.
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