The leading cryptocurrency Bitcoin fell below the $110,000 mark, and the prices of major cryptocurrencies dropped significantly. According to the US cryptocurrency exchange Coinbase, as of 5 PM on the 25th (local Eastern Time), the price of one Bitcoin was traded at $109,713, which is a decrease of 2.57% compared to 24 hours earlier.
This marks the first time since the 2nd of this month that Bitcoin’s price has fallen below the $110,000 level. The Bitcoin price has reverted to the level of January 20th, the inauguration day of President Donald Trump, and is down more than 11% compared to its all-time high of $124,500.
Altcoin losses were even greater. Ethereum, ranked second in market capitalization, which had recently set a four-year high by breaking the $4,900 mark for the first time, fell below the $4,400 level. Its price dropped 8.65% to $4,361.
XRP (Ripple), the third in market capitalization, saw a 6.15% drop, trading at $2.84, significantly below the $3 level. Solana and Dogecoin also showed steep declines of 8.16% and 10.76%, trading at $187 and $0.21, respectively.
Since the Federal Reserve Chairman Jerome Powell hinted at the possibility of easing monetary policy in September on the 22nd, cryptocurrencies responded positively. However, as expectations for an interest rate cut diminished, the drop in risk assets like cryptocurrencies was substantial.
Ahead of the release of the June Personal Consumption Expenditures (PCE) Price Index scheduled on the 29th, investors appear to be shifting from risky assets to cash or more conservative positions.
In particular, forced liquidations by exchanges on ‘leveraged investments’, where investors borrowed money from exchanges to invest in Bitcoin in anticipation of its rise, also contributed to the price decline. According to data from cryptocurrency analysis firm Coinglass, about $700 million worth of transactions were forcibly liquidated that day.