Bitcoin’s value has fallen sharply from its all-time high of over $100,000, after a market liquidation of more than half a billion dollars in a single day. The drop coincided with a massive market liquidation in the cryptocurrency sector of $565 million for Bitcoin alone, after the digital currency touched the $103,900 mark on December 4 before falling sharply.
The cryptocurrency market witnessed a massive liquidation of $1.09 billion in a day, with Bitcoin topping the list, followed by Ethereum with $107 million, then Ripple with $54 million, in addition to other cryptocurrencies for a total of $120 million.
Long positions dominated the liquidations with over $814 million, while short positions accounted for $280 million, resulting in 208,505 traders liquidating their positions. OKX saw the largest single liquidation at $18.94 million. According to the MacroCRG account on X on Dec. 6, this is “the largest liquidation since August.” Many crypto enthusiasts on social media have expressed concern that this could be the largest liquidation since 2021 and the largest liquidation during this bull cycle.
After weeks of volatile prices, Bitcoin price rose again to $98,000. Surprisingly, the price crossed the $100,000 mark, beating market expectations for the end of 2024. The rally continued, taking Bitcoin price to a new record high of $103,900, gaining more than 5% in a single day. US President-elect Donald Trump celebrated the achievement by congratulating the Bitcoin community on the X platform.
Despite the recent liquidations that indicate caution in the market, many analysts and investors still expect a significant rise in the price of Bitcoin, with their estimates for the next price target ranging between $200,000 and $500,000. However, achieving such high levels depends on many factors, including global regulatory and economic developments.