BTC Drops Under $100K, Tether CEO Weighs In on Market Shock

TL;DR

• Bitcoin fell below $95,000 for the first time since May, extending the correction and putting BTC on the verge of wiping out its yearly gains.
• The liquidation affected 278,152 traders, generating over $1.38 billion across the crypto market, $676 million of which involved BTC pairs.
• There were ETF withdrawals totaling $900 million and record highs in USDT dominance.

Bitcoin experienced an unexpected drop below $95,000, its lowest level since May, triggering a wave of liquidations that impacted thousands of traders and increased pressure across the crypto market.

The sudden decline extended the fall that began from the November 11 high of $107,482, putting Bitcoin on the edge of erasing its annual gains after reaching a record $126,251 in October and closing 2024 at $93,714.

The impact resulted in over $1.38 billion in liquidations across the crypto market, with roughly half concentrated in BTC pairs, totaling $676 million in Bitcoin alone. The largest individual event was a $44 million BTC long on HTX. The liquidation affected 278,152 traders, with long positions taking the brunt at $1.21 billion, compared to $157 million in shorts.

Paolo Ardoino, Tether CEO, reacted to the crash on Twitter, calling it a “Bitcoin Black Friday,” highlighting the magnitude and surprise of the drop. Meanwhile, Ki Young Ju, CEO of CryptoQuant, warned that it is still premature to declare a bear market unless the key $94,000 support breaks. According to him, those who entered Bitcoin six to twelve months ago have a cost basis near that level, and losing it could confirm a bearish cycle.

The pullback occurs in the context of risk aversion across global markets. Investors withdrew nearly $900 million from crypto ETFs, while economic data from China and fading expectations of a Federal Reserve rate cut increased pressure on the market. Tether (USDT) dominance reached its highest level since April, a metric historically associated with Bitcoin bear markets.

BTC Must Hold Above $94K to Avoid a Deeper Drop

Technically, Bitcoin hit a low of $94,455, falling 7% in 24 hours. Immediate resistance sits around $100,000, and the recovery will depend on the market’s ability to maintain support near $94,000. This correction follows a period of high volatility and record highs, and the yearly consolidation could still redefine the trend. Currently, BTC trades at $95,650, down 3%.

The crypto market now faces a high-pressure scenario, where recent liquidations and selling pressure on Bitcoin traders are testing BTC’s resilience