#ChristmasMarketAnalysis
In the last 24 hours, more than 1 billion USD has been liquidated in the cryptocurrency market. Market participants were surprised by the strong growth of cryptocurrencies over the past 30 days. However, some analysts suggest that this decline might only be temporary.
This month was not the first time that Bitcoin's drop below 100,000 USD caused massive liquidations of long positions.
On December 5, a sudden drop in Bitcoin's price by 5.47% below the 93,000 USD mark liquidated 300 million USD within minutes. Similarly, on December 10, there was a market crash that removed more than 1.7 billion USD from leveraged positions within 24 hours. According to CoinGlass, this was the largest liquidation of long positions in this cycle so far.
Bitcoin maximalist Fred Krueger commented on the recent liquidations on platform X. He noted that the only way to get burned while trading Bitcoin is by using leverage.
Despite the sell-offs, analyst Pav Hundal from Swyftx remains optimistic that the anticipated Christmas rally may still come. Similarly, chief cryptocurrency analyst Jamie Coutts from Real Vision stated on December 20 that a buying opportunity could arise.
Crypto analyst Caleb Franzen described volatility as a common phenomenon during a bull market. In his post from December 19, he reminded that during the previous bull cycle, there were nine significant drops in Bitcoin over 16 months. After each of them, new historical price peaks followed.