Bitcoin Drops Below $100K Amid $565 Million in Market Liquidations

Bitcoin has fallen below the crucial $100,000 psychological threshold, following its surge to a new all-time high of $103,900 on December 4. The sudden price dip has triggered significant market liquidations, with Bitcoin alone accounting for $565 million in losses within a single day.

Market Liquidation Overview

As of today, the total cryptocurrency market liquidations have reached $1.09 billion. Bitcoin led the liquidations, followed by Ethereum (ETH) with $107 million, Ripple’s XRP with $54 million, and other cryptocurrencies contributing $120 million.

Long positions dominated the liquidations, amounting to $814 million, while short positions accounted for $280 million. In total, 208,505 traders were liquidated, with OKX recording the largest single liquidation event worth $18.94 million.

MacroCRG, a notable crypto analyst, described the event as “the biggest liquidation since August” in a post on X (formerly Twitter). Other analysts have compared the scale of these liquidations to events from the 2021 bull market, marking this as the most significant liquidation of the current bull run.

Bitcoin Price Movement

After weeks of price stagnation, Bitcoin briefly surpassed the $100,000 milestone, only to retreat below it shortly after. The price surge, which saw Bitcoin reach $103,900, represented a daily increase of more than 5%. This movement reignited market enthusiasm and optimism about Bitcoin’s trajectory heading into 2024.

The market’s exuberance extended to social media, with notable figures celebrating the milestone. Former U.S. President-elect Donald Trump took to Truth Social to congratulate Bitcoin holders, stating:

“CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!” — Donald J. Trump (@TrumpDailyPosts), December 5, 2024

Future Projections

Despite the current price volatility and market liquidations, many analysts and institutions remain bullish on Bitcoin’s future. Price targets for the cryptocurrency’s next milestones range between $200,000 and $500,000, reflecting continued confidence in its upward trajectory during this bull market.

This event underscores the volatility of the cryptocurrency market, reminding traders and investors of the risks and opportunities inherent in digital asset trading.