Bitcoin fell 6% over 12 hours, dipping to a low of $95,100 on Wednesday, January 8, after briefly hitting $102,000 on January 7, a 10% weekly gain. The sudden drop of the leading cryptocurrency has sparked talk of an impending altcoin season. Is that likely, and what caused the downturn? Let’s take a closer look.
Mass Liquidations and Altcoin Response
Data from Coinglass shows more than 235,000 traders were liquidated over the past day, totaling $695 million in losses. Nearly 90% of these liquidations were long positions, with BTC and ETH accounting for over $300 million.
Binance recorded the largest liquidation — a $17.7 million ETH/USDT position.
Despite the broader market pullback, some altcoins continue to rise. According to Santiment, tokens XLM (+26%), INJ (+24%), and ADA (+19%) are all showing upward momentum.
Meanwhile, a major SUI long position worth $20 million is close to liquidation. If SUI drops to $4.56, that position will be closed at a loss.
Possible Reasons for the Market Slump
Analysts attribute the correction to a stronger U.S. dollar, falling American equities, and new employment data. Tesla and Nvidia, for instance, lost 3.1% and 8.5% in stock value, respectively, in a single day — a decline that, according to derivatives provider GreeksLive, also dragged on the crypto market.
CEHV partner Adam Cochran suggests that the dip was triggered by a negative reaction to the ISM PMI, undermining investors’ expectations of possible future rate cuts.
Expert Reactions and Forecasts
Meanwhile, the MOVE index, which measures volatility in Treasury bonds, continues to rise. Amid this, both BTC and the S&P 500 are forming a “head and shoulders” pattern, which can signal a potential further decline. This pattern, along with shifting market dynamics, heightens fears of deeper losses for cryptocurrencies and traditional assets alike.
Peter Schiff, known for his longstanding Bitcoin skepticism, repeated his prediction of an imminent BTC crash and criticized Michael Saylor of MicroStrategy, suggesting that Saylor’s leveraged buying would only delay a collapse of the company.
Robert Kiyosaki, author of Rich Dad, Poor Dad, also commented on the broader economy, pointing to his previous warning of the biggest stock market crash in history.
“I warned you all. This crash has already begun,” he stated.
Kiyosaki advises investors to brace for further turmoil and diversify portfolios into gold and silver.
Despite the downturn, analysts note that Bitcoin remains within a sideways channel formed since mid-December, after it fell from its all-time high.
10x Research analysts say a stronger U.S. dollar and higher Treasury yields are putting pressure on global liquidity, negatively affecting Bitcoin. Still, many experts emphasize that BTC remains in a sideways channel since mid-December — suggesting the overall bull trend may be intact.
Moreover, the Fear & Greed Index has only moved from 78 down to 70, indicating lingering market greed.
As for an altseason, that may still be a while off. BTC dominance stands at 57.96 at the time of writing.
For signs of an approaching altseason, check our previous coverage here.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
