Bitcoin has dropped to its lowest price since November, currently valued at around $90,198, amidst fears of high U.S. interest rates persisting into 2025. Other cryptocurrencies such as Ethereum, XRP, Solana, and Dogecoin have experienced similar declines. Notably, over $544 million in futures positions were liquidated, predominantly focusing on long trades betting on price increases.

On Monday, financial markets exhibited a downward trend as concerns regarding sustained high U.S. interest rates into 2025 impacted investor sentiment. Bitcoin suffered a significant decline, plummeting to approximately $90,198, its lowest value since November. This notable drop represents a decrease of over 4% for the day and nearly 9% over the past week, with current valuations around $90,700. The digital asset, which had previously surpassed the $100,000 threshold the week before, is now 16% lower than its all-time high of over $108,000 achieved in December.

Other prominent cryptocurrencies, including Ethereum, XRP, Solana, and Dogecoin, experienced even steeper declines. Ethereum dropped over 7% to $3,044, while XRP fell nearly 6% to $2.37. Solana’s value decreased approximately 7% to $175, and Dogecoin saw a dip of over 6% to $0.317. Furthermore, significant liquidations occurred in cryptocurrency futures contracts, totaling $544 million over a span of 24 hours, predominantly affecting long positions aiming for price increases, with Bitcoin leading with around $112 million in liquidations.

The cryptocurrency market remains sensitive to macroeconomic factors, especially policy changes regarding interest rates. The current market downturn is rooted in investor concerns that the Federal Reserve may maintain elevated interest rates longer than previously anticipated. This environment exacerbates inherent volatility in cryptocurrencies, making them particularly prone to drastic price fluctuations. Additionally, recent economic data have contributed to uncertainty, reinforcing the market’s bearish outlook and influencing trading behaviors, as evidenced by widespread liquidations of futures contracts.

In conclusion, the recent decline in Bitcoin and other major cryptocurrencies highlights the fragility of the crypto market in response to shifting macroeconomic conditions. The concern over prolonged high U.S. interest rates has led to significant price drops and extensive liquidations within the market. As investors remain wary, it is imperative to monitor ongoing economic developments that may further impact cryptocurrency valuations in the near future.

Original Source: decrypt.co

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