- Bitcoin’s price dipped below $100K after reaching an ATH of $103K, causing $496 million in liquidations.
- The crypto market saw $892 million in total liquidations, with Bitcoin leading at $565 million.
- Institutional interest in BTC remains strong, with notable inflows despite recent volatility.
Bitcoin’s price has dipped below the $100K psychological mark just a day after achieving a new all-time high (ATH), with total market liquidations amounting to $496 million. On December 5, Bitcoin reached an ATH of $103,000, surpassing the highly anticipated $100K milestone. However, the price has retreated to $98,244 at the time of writing, reflecting a 5.08% drop over the past 24 hours.
The swift price movement triggered substantial market liquidations, with $565 million wiped out on BTC. During a volatile period on December 5, the coin plunged 5.47% in minutes, briefly hitting $92,957 before rebounding to $98,244, according to TradingView. The sudden dip resulted in over $303.48 million in long-position liquidations within an hour, pushing total 24-hour liquidations to $496 million, per CoinGlass data.
Crypto Market Faces Significant $892M Liquidation
The crypto market has experienced notable fluctuations over the past 24 hours, with a significant surge in liquidations. The total 24-hour liquidation amount reached $892.88 million, marking an increase of 35.39%. The long/short ratio shows a nearly even split, with long positions at 48.66% and short positions slightly ahead at 51.34%.
Felix Hartmann of Hartmann Capital highlighted in his December 5 post that there’s a 70% chance the market has “flushed out” the leverage, while a 30% possibility remains for a deeper correction. The total liquidations across the crypto market reached $1.09 billion, with BTC leading the way. The market also experienced significant liquidations in Ethereum: $107 million, $54 million, and $120 million.
Long positions dominated the liquidations with $814 million compared to $280 million from shorts. OKX recorded the largest single liquidation worth $18.94 million. Market analysts attribute the sharp decline to heightened selling pressure following Bitcoin’s record surge. The Relative Strength Index (RSI) indicated a neutral trend at 63, while the Simple Moving Average (SMA 10) suggested a buy signal at $96,769.
On December 6, MacroCRG mentions the significant liquidation event on X posted on December 6, 2024, describing it as the “biggest liquidation since August.” Other crypto enthusiasts echoed similar concerns, with one remarking that this event is the largest since 2021 and the most substantial within the ongoing bull market.
Bitcoin Volatility Surges with Institutional Interest Growth
Bitcoin’s recent volatility follows a remarkable price surge, sparking traditional investors to capitalise on gains. This shift led to a $51.32 million outflow from US BTC spot ETFs, with Grayscale’s Bitcoin Trust (GBTC) seeing a significant $148.78 million exit. Despite this, Grayscale Bitcoin (BTC) experienced inflows of $95.35 million, signalling sustained institutional interest.
Bitcoin’s ascent to $98,000 culminated in an unexpected breach of the $100,000 target, a milestone celebrated by U.S. President-elect Donald Trump, who congratulated Bitcoiners in a post on X. Analysts remain cautious, with Bernstein Research revising its bullish 2025 price target to $200,000 from $150,000, driven by rising institutional demand.
On Dec 5, Bitcoin dropped about 10%, its value cap went down by $200 billion, and now its market cap rests at $1.92 trillion. After its high in March of $73,679, the price has been between $53,000 and $72,000. Nevertheless, the long-term prospect is still the case due to the continuous institutional interest and restrictive supply the recent halving event produced.
Read more: Bitcoin Surpasses $100K for the First Time Amid Trump’s Crypto Plans
