Originally published on: December 05, 2024
In a surprising turn of events on Dec. 5, the price of Bitcoin took a steep dive, erasing a whopping $300 million worth of long positions within minutes as it dropped by 5.47%. The sudden plunge saw Bitcoin’s price briefly falling below $93,000 before rebounding to $96,410.
Between 10:23 am UTC and 10:28 am UTC, Bitcoin plummeted from $98,338 to $92,957, sparking panic among traders. This rapid price decline triggered over $303.5 million in liquidations of long positions within the hour, adding to the total liquidations of $404 million over the past 24 hours, according to data from CoinGlass.
Hartmann Capital founder Felix Hartmann commented on the situation, stating that there is a high probability that the recent flush was the end of it, with a slight chance of further decline if enough traders get spooked into taking profits.
Despite the sudden drop, pseudonymous crypto trader Smiley Capital noted that Bitcoin made history by shedding about $200 billion in just 3 minutes, showing the extreme volatility of the cryptocurrency market.
The market capitalization of Bitcoin stood at $1.92 trillion at the time of publication, following its recent record-breaking climb above $100,000. However, IG market analyst Tony Sycamore suggested that the sharp retracement might signal a short-term plateau for Bitcoin, hinting at a consolidation phase in the near future.
After hitting an all-time high of $73,679 in March, Bitcoin has been consolidating in a range between $53,000 and $72,000. The year has also seen a notable influx of over $31 billion in net inflows from spot Bitcoin exchange-traded funds in the U.S., coupled with reduced supply from Bitcoin’s fourth halving in April.
While the recent price drop may have rattled some investors, the overall outlook for Bitcoin remains optimistic as it continues to make headlines with its unprecedented price movements. So, buckle up for the wild ride ahead in the world of cryptocurrencies.
