Bitcoin Price Falls to $96,256, Causing $500M in Liquidations

Bitcoin has taken a bit of a tumble, dropping to $96,256 after failing to break the $100,000 mark that had everyone buzzing. It’s a bit of a setback from its recent high of $99,645, which it hit on November 22. This decline comes after a pretty impressive 44% rally starting on November 5, which was sparked by news of Donald Trump’s presidential election win.

During this pullback, Bitcoin lost over $60 billion in market capitalization, which is no small change. In the past 24 hours alone, over $500 million in liquidations hit the cryptocurrency market, affecting a whopping 197,551 traders. Long positions accounted for $380 million of these liquidations, with short positions making up the remaining $120 million.

Bitcoin’s share of these liquidations came in at $70.4 million, while Ethereum followed close behind at $43.4 million. Other cryptocurrencies like Dogecoin and XRP also saw significant losses, with liquidations totaling $35.3 million. Even smaller altcoins such as Stellar and Sandbox weren’t spared, taking some hits as well.

Experts are pointing to a mix of geopolitical and macroeconomic factors as the main drivers behind this market volatility. Escalating tensions in the Middle East have led some investors to shift their focus to more traditional safe-haven assets, pulling money away from the cryptocurrency market. The strength of the U.S. labor market and adjustments in Federal Reserve rates have also played a role, contributing to Bitcoin’s recent decline despite its earlier rally.

Looking at historical patterns, it’s not uncommon for Bitcoin to experience significant corrections following parabolic runs. Some analysts, like Peter Brandt, are forecasting potential declines to around $91,583 or even $85,610. Various indicators, including the TD Sequential indicator, are suggesting further drops may be on the horizon, with $94,200 being highlighted as a critical level to watch.

This recent round of liquidations is one of the largest we’ve seen in the past six months. Bitcoin and Ethereum alone accounted for $121 million in losses, adding to the overall market turbulence. Despite these challenges, Bitcoin still maintains its dominance, representing 56.2% of the $3.46 trillion cryptocurrency market. Trading volume remains high at $48.9 billion, signaling that investors are still active in the market.

While short-term uncertainties remain, there’s a cautious sense of optimism for the medium-term outlook. Historical data often points to potential recoveries in December, so there’s hope on the horizon. Analysts are urging traders to navigate this volatility carefully, waiting for clearer market signals to guide their next moves.