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Profit-taking in Bitcoin (BTC) led to a wider market decline, with tokens from major blockchains, including Solana's SOL, experiencing significant drops of up to 8% in the past 24 hours, according to data.

On Friday, during European trading hours, the price of Bitcoin experienced a dip below $30,000, while the broader traditional financial markets remained mostly stable. Additionally, Ether (ETH) also faced a decline of over 3%. Among the other major cryptocurrencies, XRP suffered a significant drop of as much as 6% within the past 24 hours, while Cardano's ADA and Avalanche's AVAX saw a decrease of 4% during the same period.

In other markets, Stellar's XLM experienced a 6.6% decline, which can be attributed to traders capitalizing on their gains after a notable 10% increase during the previous week. Meanwhile, Chainlink's LINK remained relatively stable after a significant 15% surge on Thursday, which was fueled by the recent introduction of its CCIP protocol earlier in the week.

The introduction of a new digital assets oversight bill by U.S. House Republicans on Thursday, with the objective of establishing a regulatory framework to safeguard investors in the crypto sector, might have triggered some of the selling pressure.

According to analysts, certain sections of the revised bill have been modified to specifically exclude various traditional securities, such as stocks, bonds, "transferable share(s)," "certificate(s) of interest or participation in any profit-sharing agreement," and other similar assets, from the definition of "digital assets."

“All they have to do is argue that a token is a "transferable share" "a profit interest" etc,” Gabriel Shapiro, general counsel at crypto fund Delphi Digital, tweeted. “XRP and such will be fine but DeFi can still be persecuted at will... actually the regulators will have expanded authority to do so.”

The CoinDesk Market Index (CMI), a comprehensive index created to gauge the performance of the cryptocurrency market based on market capitalization weightings, experienced a decline of 1.7%.

In the last 24 hours, the decline in prices led to liquidations totaling more than $66 million, according to data from the analytics tool Coinglass. Interestingly, slightly over 70% of these liquidations originated from long positions, indicating that they were taken by traders who had been speculating on higher prices.

Liquidations happen when traders borrow funds from exchanges to speculate on crypto prices with a relatively smaller initial capital, which is surrendered when prices reach a predetermined liquidation level.