Bitcoin and altcoin prices plunge as investors await U.S. economic data for direction

In the past week, the cryptocurrency market has experienced dramatic volatility, with Bitcoin (BTC) falling below the $100,000 mark, and altcoins such as Ethereum (ETH), XRP, and Solana (SOL) also facing sharp declines. This series of price fluctuations not only affected market sentiment, but also triggered a large number of liquidations.

Meanwhile, the upcoming US economic data this week, including consumer confidence, GDP estimates, and PCE inflation reports, may further exacerbate market uncertainty. As these key data approach, the cryptocurrency market faces more risks and challenges. This article will analyze the current market performance and how the upcoming economic data may affect the trend of cryptocurrencies.

Introduction

After a quiet weekend, the cryptocurrency market experienced violent fluctuations in early Asian trading on Monday. The price of Bitcoin once fell below $100,000, while altcoins performed even worse, and many mainstream tokens plummeted. At the same time, the market's decline is closely related to the upcoming US economic data, which may have a significant impact on the crypto market. This article will analyze the current market trend in detail and explore how the upcoming economic report may further exacerbate the volatility of the cryptocurrency market.

Bitcoin plunges below $100,000, altcoins suffer even more

After a quiet weekend, the cryptocurrency market has seen sharp price fluctuations. Bitcoin (BTC) fell from around $105,000 last week to below $99,700, hitting a new weekly low. The daily decline in Bitcoin prices exceeded 5%, causing the market value of the entire crypto market to fall below the $2 trillion mark.

Similar to Bitcoin, altcoins performed even worse. Ethereum (ETH), which once challenged $3,400, fell more than 7% in a day to $3,100. Other mainstream tokens, such as XRP, BNB, ADA, SOL, and LINK, also suffered significant declines during the same period. For example, XRP fell below $3, BNB fell to $650, ADA fell to $0.9, and SOL was not spared, with its price plummeting to double digits.

In addition, the prices of tokens such as DOGE, SUI, PEPE, HBAR, SHIB, LTC, APT, and AAVE also fell sharply, with a general decline of more than 10%. According to CoinGlass data, the total amount of liquidation in the crypto market has exceeded US$600 million in the past 24 hours, of which the largest single liquidation occurred on the HTX exchange, involving the BTC/USDT pair, with an amount of up to US$98.46 million. The violent fluctuations caused the positions of nearly 230,000 traders to be liquidated, and market sentiment deteriorated significantly.

The release of US economic data is imminent, which may exacerbate market volatility

In addition to the volatility of the cryptocurrency market itself, the US economic data to be released this week has also brought more uncertainty to the market. According to economists' forecasts, the United States will release several key economic reports, including consumer confidence data, fourth quarter GDP growth estimates, and PCE inflation data for December.

The release of these data may have a profound impact on the cryptocurrency market. For example, consumer confidence data released on Tuesday may provide the market with new clues about the health of the US economy. On Wednesday, the Federal Reserve will hold a meeting that may provide some hints on the future direction of monetary policy. Especially in the context of President Trump's promise to ask the Federal Reserve to cut interest rates, the market's expectations for rate cuts are still full of uncertainty.

On Thursday, the release of the annualized GDP estimate for the fourth quarter will provide economists with the latest views on the growth rate of the US economy. If GDP growth is greater than expected, it may weaken the Fed's reason for cutting interest rates, which will have a suppressive effect on the crypto market. Conversely, if economic growth slows, it may provide more support for rate cuts and help ease market concerns.

In addition, the PCE inflation report released on Friday will serve as one of the important bases for the Fed's decision-making. This data directly affects the Fed's future monetary policy. If the PCE index exceeds expectations, it may further suppress the risk sentiment in the crypto market.

Tech company earnings affect crypto market sentiment

This week is also a critical moment for tech giants. Microsoft, Meta Platforms, Tesla and Apple, among the "Big Seven", will release quarterly earnings reports one after another. The performance of these companies often affects the sentiment of global investors, which in turn affects the cryptocurrency market. If the earnings of these tech giants are less than expected, it may trigger a comprehensive sell-off in the market.

The outlook for the cryptocurrency market still needs to be cautious

Although the cryptocurrency market has experienced dramatic price fluctuations, the overall market still faces great uncertainty. With the release of key US economic data, the market may face greater volatility risks. Investors should remain cautious and pay close attention to upcoming economic data and the Federal Reserve's monetary policy trends in order to better respond to possible market fluctuations.

In summary, the recent turmoil in the cryptocurrency market is not an isolated incident, and the market is sensitive to upcoming economic data and changes in the global macroeconomic environment. In the short term, the crypto market may continue to face greater volatility, and investors should do a good job of risk management and always pay attention to the potential impact of external economic factors on the market.