Bitcoin and Dogecoin Tumble as $700M Liquidations Rock Crypto

Bitcoin’s sudden drop below $100,000 during late U.S. hours shook the crypto world, with Dogecoin (DOGE-USD) and other major tokens following suit in a market-wide sell-off. The downturn led to over $700 million in liquidations, marking a turbulent day for leveraged traders, according to CoinDesk. This sharp market movement coincided with comments from Federal Reserve Chair Jerome Powell, who clarified that the central bank cannot hold Bitcoin under current rules.

Powell’s Comments Hit Market Sentiment

During a post-FOMC press conference, Powell addressed President-elect Donald Trump’s campaign promise to create a U.S. Bitcoin reserve, stating, “That’s the kind of thing that Congress should consider, but we are not looking for a law change.” This dashed hopes that the government would actively back Bitcoin, causing it to slide 3%.

Dogecoin and other tokens were hit even harder, with DOGE and Solana (SOL-USD) shedding up to 5.5% each. Ethereum (ETH-USD) and Binance Coin (BNB-USD) dropped 2.5%, while Chainlink (LINK-USD) plummeted 10% after Trump-backed World Liberty Financial sold $2 million worth of the token, further compounding losses.

Liquidations Expose Market Volatility

The crash triggered a cascade of liquidations across futures markets, with XRP (XRP-USD) and DOGE seeing unusually high losses. This liquidation frenzy, totaling $700 million, highlighted the risks of speculative trading. Nick Ruck of LVRG Research suggested the market may have peaked, noting that Powell’s comments undermined bullish momentum tied to Trump’s Bitcoin reserve pledge.

Traders Urged to Stay the Course

Despite the turmoil, Singapore-based QCP Capital encouraged traders not to abandon positions, pointing to a potentially bullish 2025 under Trump’s administration. “Don’t get shaken out of your positions,” the firm stated in a Thursday broadcast.

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