Bitcoin Price Drop: What Happened
Will it come back stronger? 🚀🔥
Bitcoin recently experienced a sharp drop in price after reaching an all-time high of $103,900 on December 4, 2024. This led to a 10% price correction, with Bitcoin dropping to $93,000 in the following days. The reason for this drop was primarily due to profit-taking by investors who decided to sell after the peak. This caused significant volatility in the market, affecting not only Bitcoin but also other cryptocurrencies.
In addition, the liquidation of leveraged positions played a significant role in exacerbating the price decline. More than $1 billion worth of liquidations occurred in just one day, with $816 million coming from long positions (betting on higher prices). These liquidations led to increased market pressure, further driving down prices.
Despite the volatility, Bitcoin has recovered some of its value, and it is now trading around $96,600. Analysts suggest that the next major movement for Bitcoin will depend on its ability to maintain support levels and whether institutional investors continue to show interest in the asset. The upcoming halving event in 2024 may also influence the market by reducing Bitcoin's supply and potentially increasing demand.