Bitcoin registered a sharp drop and operated below US$ 104 thousand this Tuesday (4), reaching the lowest level since June. The movement triggered liquidations of more than US$1.2 billion in cryptocurrency futures contracts, according to data from CoinGlass. The devaluation accompanied the decline in traditional markets, with S&P 500 and Nasdaq futures falling more than 1%.
The pressure began after the Federal Reserve reduced the interest rate by 0.25 percentage points the previous week, but signaled caution in further cuts. Statements by Fed Chairman Jerome Powell have dampened appetite for risky assets. The market also absorbed lower-than-expected results from Palantir and warnings about high valuations in technology companies.
- Main cryptocurrencies affected:
- Ethereum: decline of 6%, quoted at US$3,630.
- Solana: down 10%, below US$160.
- XRP: 5% devaluation.
The total cryptocurrency market capitalization reduced to $3.6 trillion, with a loss of $100 billion in one day.
Fall accelerates in the early morning
Bitcoin broke the $106,000 support duringdawn, a level maintained in previous weeks. The crash intensified automatic selling in leveraged positions.
About 90% of settlements involved bullish bets. The largest single transaction was a US$33.9 million contract at HTX.
Brokers with the highest volume of closures included Hyperliquid, Bybit and Binance.
Macroeconomic factors in focus
The Fed’s cautious tone contributed to strengthening the dollar and reducing exposure to volatile assets. Analysts highlighted that strong corporate balance sheets contrast with high valuations.
Mike Gitlin, CEO of Capital Group, highlighted challenges in technology stock prices during an event in Hong Kong.
Signs of concern included a rise in Oracle’s Credit Default Swaps, indicating fears of default.
Movements in other cryptocurrencies
Ethereum maintained moderate losses compared to more volatile altcoins. Solana recorded the worst performance among the majors, returning to August levels.
Coins like BNB, Cardano and Dogecoin followed the general downtrend. Trading volume increased with volatility.
Most impacted platforms
Hyperliquid led in settlement volume, followed by Bybit and Binance. Decentralized platforms recorded lower relative exposure.
Leveraged operators faced insufficient margins, forcing cascading sales.
Global market effects
The devaluation of cryptocurrencies aligned with the negative performance on Wall Street. Stock index futures fell in response to economic data and monetary statements.
The market absorbed additional losses after a volatile October for Bitcoin.
Broken technical levels
The $106,000 support acted as a psychological barrier in recent weeks. The break opened the way for tests at lower levels.
Analysts monitor possible recoveries if risk appetite returns.
Distribution of settlements
The majority of closed positions were held by investors who were optimistic about the market. Bullish bets accounted for the bulk of automatic losses.
Bitcoin contracts dominated total volume of $1.2 billion.
