Key Points
- Bitcoin’s value plunged below $100,000 after reaching a record high, leading to a market liquidation of over half a billion dollars.
- The total crypto market saw massive liquidations of up to $1.09 billion, with Bitcoin leading the way.
Bitcoin’s value slipped below the significant $100,000 mark after attaining a new high. This resulted in the liquidation of over half a billion dollars from the Bitcoin market within a day.
Massive Crypto Market Liquidations
On December 5th, Bitcoin (BTC) reached a record high of $103,900. This led to massive market liquidations amounting to $565 million for Bitcoin alone. Other cryptocurrencies followed suit, with market liquidations totaling $1.09 billion for the day. Other cryptocurrencies, including $120 million for others, $107 million for Ethereum (ETH), and $54 million for Ripple’s token (XRP), also experienced significant liquidations.
The majority of these liquidations, amounting to over $814 million, were long positions. Short positions accounted for $280 million, with 208,505 traders liquidated. The largest single liquidation, amounting to $18.94 million, occurred on OKX.
A post by MacroCRG on December 6th referred to this as “the biggest liquidation event since August”. Felix Hartmann, the managing partner of Hartmann Capital, also noted in a post that there was a 70% chance this market flush would end and a 30% chance it would go lower.
Bitcoin’s Price Fluctuations and Future Projections
After weeks of fluctuating prices, Bitcoin reached the $98,000 level. The market had anticipated that the price would break the $100,000 target before the end of 2024.
The price then rose again, reaching a new all-time high of $103,900 after a daily surge of more than 5%. U.S. President-elect Donald Trump even celebrated the event by congratulating Bitcoin users in a post.
Despite the market enthusiasm reflected in these liquidations, another price target is still far off. Bernstein Research has set an ambitious bullish target price of $200,000 for 2025.
Charles Hoskinson, the founder of Cardano, projects that the price could rise to $250,000 within just two years. He believes that this target price is the minimum achievable, while the maximum target is $500,000.