The '100,000 USD level' did not last a day! BTC dropped by 5%, with nearly 600 million USD in total network contracts being liquidated.

BTC didn't come back to its senses until January 6th when it broke through $100,000, but it collapsed and weakened in just one day. Influenced by a series of strong economic data, the market's anticipation of interest rate cuts cooled down. US bond yields surged, and coupled with a simultaneous pullback in US stocks, BTC experienced its largest decline in two weeks and once again fell below the $100,000 mark.

As of the time of writing, BTC reported $96,664, with a daily decline of 5%. Other major cryptocurrencies also fell one after another, with Ethereum plummeting 8.5% to $3,370; Solana (SOL) fell more than 8% to $199.26; Dogecoin (DOGE) also fell 11% to $0.3481.

According to CoinGlass data, this round of sell-off has triggered a large number of liquidations in leveraged positions. The total open interest (liquidation amount) of cryptocurrency market futures contracts in the past 24 hours has reached USD 599 million, of which over USD 540 million came from long positions.

The downward trend of BTC started last night (7th) due to the end of the two-day rally in the US stock market and a turn to decline. According to the data from the Institute for Supply Management (ISM), the performance of the US service industry in December exceeded market expectations, and the input price index rose to nearly a two-year high.

In addition, the US Bureau of Labor Statistics (BLS) released the Job Openings and Labor Turnover Survey (JOLTs) for November last year, showing that the number of job vacancies significantly exceeded expectations, reaching a six-month high, further proving the stability of the labor market. A series of strong economic data has led to a surge in US bond yields, impacting the stock market and cryptocurrency market.

Bob Wallden, Head of Trading at digital asset company Abra, said, "The ISM data triggered a stock market sell-off, and due to the high correlation between cryptocurrencies and the Nasdaq index, this selling pressure quickly spread to the cryptocurrency market." He added:

After BTC broke through $100,000, some investors chose to take profits, triggering stop-loss orders for long positions and further intensifying the decline.

In addition, the news of Trump's uncertain position on trade tariff policies after his election has also added uncertainty to the market. Bob Wallden pointed out that the volatility of the US bond market has further exacerbated the market's cautious sentiment towards BTC. Please provide the text to be translated. Although BTC experienced a significant pullback on Tuesday, just the day before, the BTC spot ETF attracted a net inflow of 987 million US dollars, marking the largest scale since November last year. On the previous trading day, the inflow of funds into the ETF also reached as high as 908 million US dollars.

The '100,000 USD milestone' didn't last for a day! BTC fell by 5%, with nearly 600 million USD in liquidation across the entire network. This article was first published in 'Block'.