Crypto Carnage: $864M Liquidations as Bitcoin Drops Below $100K

Cryptocurrency markets experienced a significant downturn on Monday, with Ripple's XRP, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) all posting double-digit losses. The sell-off was triggered by a sharp decline in Bitcoin (BTC), the world's largest cryptocurrency by market capitalization, which fell below the psychologically important $100,000 level. The crypto carnage resulted in approximately $864 million worth of liquidations in 24 hours, with Bitcoin traders bearing the brunt of the losses.

All top 50 cryptocurrencies, excluding stablecoins, posted overnight losses, with Solana's SOL suffering the most significant drop of 12% to $223. Ripple's XRP and Cardano (ADA) also experienced double-digit losses, falling 11% and 10.7% respectively. Ether (ETH), the second-largest cryptocurrency by market capitalization, plunged 7.4% in the past day and roughly 9.2% in a week. Even meme currencies like Dogecoin (DOGE) were not spared, shedding 11.2% of their value in 24 hours.

Looking ahead, the crypto market mayhem comes ahead of the first U.S. FOMC meeting in 2025. Traders expect no indications of a rate cut at the two-day meeting, which will take place from Jan. 28 to Jan. 29. The Federal Reserve will decide on interest rate changes at this meeting. Most observers generally believe the latest bloodshed is a healthy correction rather than the start of a longer downward trend. Bullish sentiment remains strong as Michael Saylor's MicroStrategy and Trump's World Liberty Financial continue accumulating crypto.

In other news, Elon Musk's AI chatbot, Grok, offered insights into potential price movements for XRP by February 1, 2025. With XRP currently trading at $2.91, having decreased by 6% from the previous day, Grok's response shows that the cryptocurrency community remains divided over its short-term and long-term prospects. Grok's final opinion on XRP price for February 1 suggests a range of $3 to $5, with a highly optimistic scenario pushing towards or beyond the higher end of the