Bitcoin Falls Strongly Ahead of FOMC Minutes – Why Did the Cryptocurrency Market Drop Today?

Bitcoin price fell sharply, near $96,000, pushing the market below support levels.

like Bitcoin price Decreased by 5.46% Ethereum price It registered a decline of 8.97%, trading at $3,348, while XRP and SOL recorded a loss of 4.25% and 9.12%, respectively. Dogecoin and Cardano also faced massive declines of over 10% and 9%, with other altcoins recording similar declines. Global trading volume reached more than 170 billion US dollars, an increase of more than 33.12%, while the market value decreased to 3.36 trillion US dollars, a decrease of 6.38%.

What went wrong? Why are cryptocurrency markets falling so hard?

Two major events are scheduled for a short while now: the US Non-Farm Payrolls report and the FOMC minutes. While the ADP report is a peek into the health of the labor market, setting the tone before the big reveal, the FOMC minutes delve into the Fed’s mind. It highlights their view on what prices will have an impact on the price of BTC.

What’s next for BTC price and the entire market? Looking at liquidations, it has once again reached a peak of around $558 million in a long period, with Bitcoin alone recording nearly $100 million. However, the pressure has not diminished yet as the symbols continue to face off evenly for both sides.

The above liquidation chart from Coinglass indicates that bears are setting up sell trades at interesting levels. If Bitcoin price rebounds to $98,600, more than $35 million will be liquidated, and if it recovers to levels above $103,300, more than $66 million will receive the same fate. In short, it appears that traders are either pessimistic or unsure about the sustainability of the starting token. However, choppy volatility is always good for maintaining a healthy trend, thus, a potential decline is expected to attract significant volume to the platform.

The start of 2025 has been recorded as one of the most bullish years in recent history, with Bitcoin, Ethereum and other altcoins managing to hold above the pivotal range. Regardless of the corrections, some altcoins, such as XRP, XLM, BNB, etc., and some others are showing strength, indicating that a recovery may be near. Meanwhile, Bitcoin’s dominance continues to remain within Dire Strait, suggesting that a potential alternative season may also be on the horizon.