Bitcoin’s recent dip below $97,000, which triggered over $600 million in liquidations within 24 hours, stems primarily from strong U.S. economic data pointing toward potential interest rate hikes.

This development makes cryptocurrencies less attractive as investments, while the Federal Reserve’s signals of tighter monetary policy further intensify market corrections.

In the short term, this significant liquidation event has heightened market volatility, as rapid price adjustments often follow forced sales.

Traders may reduce leverage to avoid additional liquidations, potentially leading to a phase of consolidation or further price declines, contingent on prevailing market sentiment.

The interplay between macroeconomic indicators and crypto market dynamics will remain a critical factor influencing investor behavior and overall market performance in the coming weeks.

Ryan Lee, Chief Analyst at Bitget Research