Bitcoin has dropped to around $109,000, extending its struggle to stay above the $110,000 mark, as global cryptocurrency markets endured heavy sell-offs over the past week.
The total crypto market capitalization slid to $3.77 trillion after losing about $300 billion in value. The decline was triggered by widespread liquidation of leveraged positions, weak investor sentiment, and mounting global economic uncertainties.
Ethereum, the second-largest cryptocurrency, suffered one of its sharpest declines since June, falling more than 10.3% to trade at $4,007. Its market capitalization now stands at $483 billion, while Bitcoin’s market cap has fallen to $2.179 trillion following a 6% weekly decline.
Analysts said more than $3 billion worth of long positions were liquidated across exchanges, though the full extent of leverage in the system remains uncertain due to opaque reporting practices by many trading platforms.
Despite the downturn, market conditions slightly improved after a U.S. inflation report showed slower growth, raising expectations that the Federal Reserve could ease pressure on interest rates. However, exchange-traded funds (ETFs) tracking Bitcoin and Ethereum in the U.S. recorded over $500 million in combined outflows on Friday, highlighting persistent caution among investors.
