(MENAFN) Bitcoin experienced a nearly 6% decline on Tuesday as the US dollar strengthened and a surge of $1.3 billion in crypto liquidations hit the market.

The leading cryptocurrency was valued at $100,980 at 18:50 GMT, briefly dropping below the $100,000 mark for the first time in four months.

According to data from CoinMarketCap, the overall value of the global cryptocurrency market, including Bitcoin, decreased by roughly 5.8% over the past 24 hours, reaching $3.35 trillion.

Bitcoin's market capitalization also fell by 5.8% in the last day to $2 trillion, while its daily trading volume surged over 39% to $92 billion.

Despite the recent dip, Bitcoin’s price has risen nearly 7.7% since the beginning of 2025, maintaining its status as the largest cryptocurrency by market value.

Ethereum, the second-largest digital currency by market capitalization, saw a 9.8% drop, bringing its price down to $3,290.

The US dollar index climbed above 100 for the first time since August, fueled by uncertainty over the Federal Reserve’s interest rate reduction plans.

The index increased 0.3% on Tuesday, reaching 100.17.

Furthermore, CoinGlass reported that the past 24 hours witnessed the largest wave of liquidations in weeks, eliminating nearly $1.27 billion in leveraged futures contracts across various cryptocurrencies.

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