$649 Million Liquidated as Bitcoin Price Drops Below $100,000

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As a seasoned crypto investor with years of market navigations under my belt, I must admit that this latest Bitcoin flash crash has stirred a familiar sense of turbulence. However, it is crucial to remember that such dips are inevitable and often pave the way for greater gains in the long run.

In the last hour, Bitcoin (BTC) experienced a sudden drop in price from around $102,000 to $97,640. The reason behind this rapid sell-off is unclear, but it has triggered crypto market liquidations worth approximately $649 million over the past day. Despite this downturn, the overall crypto market capitalization still shows a 54% increase, currently standing at $3.56 trillion.

Bitcoin Long Traders Took the Heat

As an analyst, based on the data I’ve observed from CoinGlass, a staggering 181,646 positions have been liquidated so far. Among these, Bitcoin has led the charge with a total recorded loss of approximately $216.95 million for the day. Interestingly, long traders accounted for over half of this amount, with a loss of about $130 million. The remaining liquidation was due to short traders.

The altcoins such as Ethereum experienced significant selling off, amounting to a value of approximately $81.81 million. Additionally, Ripple (XRP), Dogecoin (DOGE) and Solana (SOL) also suffered losses totaling about $39.41 million, $33.42 million, and $24.15 million respectively.

As a researcher, I’ve observed an intriguing development in the Bitcoin market: after plummeting to approximately $97,640 – a rare manifestation of market turmoil – we are currently witnessing recovery, with the price now at $99,236.64, representing a 0.21% increase from its previous state. Notably, on November 4, Bitcoin surpassed the $100,000 mark for the first time in history, and following this breakout, the price reached as high as $103,900.

The sequence of occurrences led to a rise in the coin’s cost due to an increase in purchasing by institutional investors such as MicroStrategy. Once every single address on the network became profitable, these traders decided to liquidate some of their holdings, causing the market to dip.

Hopes for Grand Recovery

Based on insights from market experts, Bitcoin and several other cryptocurrencies are presently experiencing a period of pricing exploration. Even amidst the present slump, analysts such as CryptoQuant’s founder, Ki Young Ju, anticipate that Bitcoin might reach its maximum value at a future date rather than immediately.

In his latest update on X, he encouraged the community to keep their cryptocurrencies and resist the temptation to cash out prematurely.

Do not sell your #Bitcoin.

We’ve reached a fresh all-time high, surpassing a significant psychological barrier and now exploring uncharted pricing territories.

I repeat, DO NOT SELL YOUR BITCOIN.

— Ki Young Ju (@ki_young_ju) December 5, 2024

Among numerous influential figures, he maintains a positive outlook, suggesting that Bitcoin can still make a significant comeback, even if it falls below the $100,000 perceived threshold.

As Paul Atkins is nominated as the new U.S. SEC Chairman, there’s a sense of increased excitement about potential market changes. Consequently, it’s likely that more investors could decide to join the market in the future.

This quarter’s increase in institutional investors entering the Bitcoin market suggests a change in the typical financial sector’s attitude towards Bitcoin. As supply decreases and demand builds, it’s likely we’ll see more optimistic price movements ahead.

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2024-12-06 01:32