Cryptocurrency prices are plunging across the board early Tuesday, led by major assets like Bitcoin, Dogecoin, and Solana, as new economic data appears to be sending a chill across the crypto and stock markets alike.
Bitcoin plunged from a price of nearly $101,000 to a current price of $97,856, showing a more than 4% dip on the day. Ethereum and Dogecoin, meanwhile, have both fallen by about 7% on the day, with Solana close behind with a 6% drop.
Hotter-than-expected data on job openings in the United States appears to have played a role, along with investors no longer pricing in an interest rate cut from the Federal Reserve in the first half of 2025.
Crypto liquidations jumped following the markets correction, with $385 million worth of long and short positions nuked over the last 24 hours per data from CoinGlass. Some $230 million worth came in the last four hours alone, with long positions making up the vast majority of the liquidations at $212 million.
The digital asset market has largely benefited from low interest rates, because cryptocurrencies tend to experience more volatile price movements.
America’s central bank in 2022 aggressively hiked interest rates in a bid to tame inflation following the COVID-19 pandemic, making Bitcoin less attractive to investors.
But Bitcoin—along with equities—boomed last year on the Fed’s moves to finally lower the cost of borrowing. U.S. equities also experienced upwards price action.
In December, Bitcoin hit a new all-time high of $108,135. Trump winning the presidency and the approval of spot Bitcoin ETFs in the U.S. also played a big role in cryptocurrency prices surging.
Federal Reserve Chair Jerome Powell in December warned that the central bank would not aggressively cut further, saying that 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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