Bitcoin fell below $98,000 for the first time since May, due to cooling economic activity in China and fading hopes for a Federal Reserve rate cut. This led to significant declines in major cryptocurrencies, with over $1 billion in leveraged crypto positions being liquidated.
A key driver of the downturn was China’s latest dataset showing economic activity slowing down more than expected. This caused Asian stocks to fall, and subsequently, crypto markets followed suit. The sudden loss of liquidity on BTC also accelerated the decline.
The situation is further complicated by fading hopes for a December Federal Reserve rate cut. Money markets now price the odds at below 50%, which has led to traders reassessing their positioning into year-end. While this may have caused some traders to close out positions, it’s unclear whether forced unwinds have run their course.
Looking ahead, BTC’s break below $98,000 puts focus on support near $94,000. Altcoins remain vulnerable if equities continue to pull back. However, structurally, liquidation-driven resets often mark exhaustion zones. Whether this dynamic repeats depends largely on macro volatility stabilizing over the next 48 hours.
In other markets, ETH fell more than 8% to around $3,500, and XRP saw significant losses as well. The situation is ongoing, with traders and investors closely monitoring events in crypto and equity markets.
Source: https://www.coindesk.com/markets/2025/11/14/bitcoin-plunges-under-usd98-000-eth-sol-ada-down-8-as-usd880m-in-bullish-bets-liquidated