Bitcoin extended its losses on Tuesday, falling below $105,000, as one of the biggest waves of sell-offs in weeks swept through cryptocurrency markets and investors remained cautious about the U.S. Federal Reserve’s interest rate outlook.
The world’s largest cryptocurrency was trading 2.4% lower at $104,956.8 at 6:02 a.m. (Spanish time).
Bitcoin fell nearly 4% in the previous session, reaching its lowest level since mid-October.
Bitcoin plunges further after a wave of liquidations
CoinGlass data showed that over $1.27 billion in leveraged cryptocurrency futures positions were wiped out in the last 24 hours, marking the largest wave of liquidations in weeks.
Most of the losses came from long positions, as traders betting on higher price gains were forced to unwind positions in the face of a sudden drop in the price of Bitcoin.
The sharp decline came as risk appetite deteriorated in global markets, with investors digesting mixed signals from Federal Reserve officials about the direction of monetary policy.
Fed Governor Lisa Cook said on Monday that inflation was “moving in the right direction but not fast enough,” while San Francisco Fed President Mary Daly warned that the central bank should not commit to further rate cuts until there is clearer evidence of slowing price pressures.
The mixed messages reinforced uncertainty about whether the Fed will go ahead with another rate cut in December, prompting traders to reduce their risk exposure.
A stronger US dollar and rising Treasury yields added pressure on Bitcoin and other cryptocurrencies.
The fall in bitcoin prolonged a volatile start to November, following its first loss during October, which had been historically bullish since 2018.
Cipher Mining shares soar after $5.5 billion deal with AWS
Cipher Mining (NASDAQ:CIFR) shares rose more than 20% on Monday after the company announced a $5.5 billion 15-year lease agreement with Amazon Web Services Inc.
The agreement to supply 300 megawatts of capacity for its AI infrastructure starting in 2026 underscores Cipher’s strategic shift from cryptocurrency mining to the burgeoning high-performance computing and AI hosting sector.
Source: Investing.com
