On December 5, 2024, the global digital currency market experienced a severe fluctuation. Bitcoin (BTC) plummeted overnight from a historic high of $104,000 to below $90,000, with a single-day decline of over 10%. This volatility caught global investors off guard, triggering over $1.087 billion in liquidations, affecting more than 210,000 traders.
Market technical adjustments:
• After Bitcoin broke through the psychological barrier of $100,000, the market needed to undergo a round of liquidations to release profit taking and prevent further bubble formation.
• Users widely employing high leverage for contract trading suffered significant losses during the rapid price drop, exacerbating market turmoil.
Impact of sudden international news:
• Although the Bitcoin market is not directly linked to these events, major global news often subtly influences investor confidence. For example, a shocking report released by the United Nations Committee on Forced Disappearances stated that approximately 20,000 unidentified bodies were found at El Dorado International Airport in Bogotá, Colombia, which may have had some impact on investor sentiment.
Potential impacts of large transfers:
• The news of over 20,000 Bitcoins being transferred in Mentougou has also become a hot topic of discussion in the market. Although many industry insiders believe the impact of this news has already passed, investors should still closely monitor the potential selling behavior that such large transfers may trigger.
Market follow-up trends:
• Despite the recent decline in Bitcoin's price, the market remains hopeful about its prospects. Data shows that net inflows into U.S. Bitcoin spot exchange-traded funds (ETFs) exceeded $31 billion in 2024.
• Some analysts believe that after a short-term adjustment, Bitcoin may continue to rise. For example, some trading experts predict that Bitcoin's price will reach $400,000 by 2026.
Other digital asset performances:
• After a wave of increase in Bitcoin, market sentiment is easily influenced by fluctuations, while other digital assets may have better recovery opportunities. For instance, altcoins like Solana, Ethereum, and Dogecoin maintained relatively stable prices or rebounded quickly during Bitcoin's pullback.