After breaking the $100,000 psychological mark, Bitcoin’s celebration was short-lived as the cryptocurrency fell below $96,000 with a 3.2% drop within an hour. According to the source, a sharp decline in cryptocurrency and Bitcoin saw $450 million liquidated within just 60 minutes, triggering the sharp drop in Bitcoin and other digital assets.
Bitcoin’s High Liquidation
According to experts, Bitcoin’s recent price surge was primarily driven by the liquidation of short positions above $98,000. Historically, such liquidation is followed by a price drop. As the Federal Reserve meeting on December 18 approaches, the market remains cautious, anticipating potential developments that could affect Bitcoin’s future movement.
This led to nearly $650 million in liquidated positions in the derivatives market, marking a 45% increase within 24 hours. The majority of these liquidations, over $400 million, were from long traders. Bitcoin remains the market with the highest traders’ losses.
Following this fall, many altcoins have also turned red. Ripple’s XRP has dropped 6% today, though it still stands out as the week’s top performer.
Also Read: Ethereum Price Eyes $5k Rally as $100k BTC Ignites Whale FOMO
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