Crypto prices took a significant downturn on Saturday, with major assets like Bitcoin, Ethereum, and XRP dropping to months-low levels. Bitcoin fell 8% in one day, marking its lowest price in nine months, and extending its weekly decline beyond 13%. The decline is particularly severe for Ethereum, which dropped 13% to a recent price of $2,362, down 20% over the last week and 52% since its peak in August. XRP also saw a notable decrease of 10%, alongside other altcoins like Solana and Dogecoin experiencing double-digit losses.

Liquidations in the futures market have surged, totaling $2.53 billion in just 24 hours, with a staggering $2.41 billion attributed to long positions betting on price increases. Nearly half of this liquidation involved Ethereum, with $1.14 billion wiped out, closely followed by Bitcoin at $765 million. Traders on Myriad, a prediction market owned by Decrypt’s parent company, indicate a bearish sentiment, estimating a nearly 65% chance Bitcoin will dip to $69,000 before bouncing back to $100,000.

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Bitcoin Surges Past $67,500, Leading a Broader Crypto Market Rally

Bitcoin's rise to $67,500 signals a significant market recovery, fueled by unwinding bearish positions and improving sentiment across crypto and traditional equities.

This market dive follows a week of volatility influenced by fears of a U.S. government shutdown and concerns over a potential collapse in AI investment bubbles. Investors are pulling away from riskier assets, with nearly $1.5 billion exiting U.S. spot Bitcoin ETFs and Ethereum ETFs losing $327 million. Precious metals like gold and silver have seen all-time highs, though they also faced sharp declines recently.

The current market situation highlights a significant shift in investor sentiment, moving towards a more cautious approach amid rising economic uncertainties.