Crypto Markets Plunge as Bitcoin Drops $1,600 in Minutes
Major cryptocurrencies experienced a sharp decline on Friday, with Bitcoin dropping $1,600 in just 15 minutes, falling below $84,000. The world’s largest cryptocurrency is now trading near $84,195, down 2.1% over 24 hours. Ethereum saw a steeper drop, losing 3.5% to hit $2,613.53, while XRP fell 2.7% to $1.47. Other top altcoins like BNB and Solana also declined, shedding 2.3% and 1.9% respectively.
The sudden sell-off led to more than $400 million in long positions being liquidated within an hour, with the broader crypto market losing around $61 billion in just 20 minutes. The rapid decline drew comparisons to the flash crash of October 10, which occurred three days ago.
The market turmoil coincided with a sharp drop in US Treasury yields, which had earlier reached their highest level since 2002. Oil prices also fell, and markets are now pricing in lower inflation. If this trend continues, it could reduce pressure on the Federal Reserve and ease concerns for stocks. However, the exact cause of the crypto flash crash remains unconfirmed, though leveraged long liquidations appear to have worsened the situation.