Bitcoin’s Rollercoaster Ride: Gains Vanish Like a Magician’s Rabbit

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Bitcoin plunged below $87,000 faster than a duck diving for breadcrumbs, erasing a week’s gains in one spectacularly chaotic session.

The sudden sell-off triggered $400 million in liquidations quicker than you can say “hodl,” and sent the global crypto market capitalization tumbling 4% to a mere $3.04 trillion. Trading activity exploded like a popped champagne cork as both retail and institutional investors scrambled like chickens in a fox hunt.

Market Mayhem Unleashes Liquidation Avalanche

Liquidations surged across leveraged positions faster than Bertie Wooster fleeing an angry aunt. Market data revealed $400 million liquidated in just one hour, underscoring the perils of trading during volatile price swings.

BREAKING: Bitcoin tumbles -$4,000 in 2 hours as mass liquidations return.

$400 million worth of levered longs have been liquidated over the last 60 minutes. 🎢

– The Kobeissi Letter (@KobeissiLetter) December 1, 2025

Trading volume skyrocketed to over $110 billion as investors adjusted their portfolios with the urgency of a man dodging a falling piano. Bitcoin’s dominance stood at 57.1%, while Ethereum clung to a modest 11.3%, according to CoinGecko data.

The Kobeissi Letter pinned the crash on thin weekend liquidity and record-high leverage, quipping, “This crypto bear market is still structural in nature. We do NOT view this as a fundamental decline.” The analyst noted Bitcoin plunged $4,000 in minutes without a single news catalyst, triggering a domino-effect selloff fueled by mass liquidations.

Other analysts warned Bitcoin’s price pattern eerily resembles earlier bearish cycles. After bouncing back above $90,000 post-November 20, Bitcoin hovered around $91,208.85 on November 28 and clung to the $90,000 support level for six days like a barnacle on a ship’s hull.

Korbot Labs observed the current price action mirrors April 2024, when Bitcoin rebounded above $70,000 only to nosedive to $57,000 by May and $67,000 by June. This pattern hints at further sideways movement or another correction.

Another analyst cautioned about deeper losses, suggesting a “wipe out” could occur if Bitcoin breaches the $80,000 support level.🧐

“Bitcoin not a good open to start the week! Much closer to becoming 2-1-2d as a measured move. This tends to cause a ‘wipe out’ type move if we successfully break through 80.00. Could see as low as 48k if the sellers stick around into year-end.” 📉

Technical analysis also points to critical support zones. If the selling persists, prices could plummet further. A drop to $48,000 would mark a jaw-dropping 45% decline, though sustained bearish sentiment would likely be required.

Asset Rotation Narrative Drives Sentiment

Some analysts argue Bitcoin’s selloff is part of a broader asset rotation. The move coincided with traditional safe-havens like precious metals outperforming, suggesting investors are recalibrating their risk exposure.

This theory posits capital is flowing from digital assets to “hard money” alternatives. Silver, for instance, surged even as Bitcoin faltered. Some analysts interpret this as a shift in investor preferences.

“While #Bitcoin erased most of last week’s gains in a single candle, #Silver is breaking out vertically like there’s no tomorrow. Money is choosing real assets over speculative ones. The rotation is screaming loud: Paper wealth → Hard money, Digital risk → Monetary metals” 🚀 – Macrobysunil

This hypothesis remains fiercely debated. Bitcoin has repeatedly bounced back from steep selloffs. Its 57.1% market dominance underscores its position as the primary digital asset, despite its mood swings.

Meanwhile, on December 1, Bitcoin briefly dipped below $87,000 before recovering faster than a cat landing on its feet. At the time of writing, Bitcoin trades in the $87,200-$87,400 range, with traders eyeing the $87,000 support level with the intensity of Jeeves pondering a crossword clue.

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2025-12-01 05:47