Bitcoin experienced a significant dip on December 5, 2024, after reaching an all-time high of $103,679. The cryptocurrency fell back to around $90,300 during a day of high volatility and was trading at $95,500 when reported. The abrupt price changes led to liquidations totaling approximately $885.61 million, affecting nearly 203,000 traders worldwide. Bitcoin accounted for $540 million of these liquidations, making it the most impacted by the Market shift. Other cryptocurrencies, including Ethereum and XRP, also saw considerable liquidations. The Market remains highly volatile, highlighting the risks involved in trading cryptocurrencies. As of now, Bitcoin maintains its position as the top cryptocurrency by Market cap.
Dividing the crypto Market was the big news on December 5, 2024, when Bitcoin’s impressive climb above $100,000 hit a snag, dropping back to five-figure levels. The flagship cryptocurrency soared to a record high of $103,679 before falling to approximately $90,300 during a volatile day. As of the latest reports, Bitcoin was priced at $95,500.
Bitcoin Liquidations and Market Impact
In the wake of this price fluctuation, roughly $885.61 million in leveraged trading positions were liquidated globally, affecting over 202,000 traders. Bitcoin was the biggest contributor to these liquidations, accounting for $540 million, followed by Ethereum at $105.53 million. Other notable cryptocurrencies, such as XRP and Solana, also saw significant liquidations.
Most of the liquidations came from long positions, which tie to investors betting on rising prices. Long traders faced heavy losses, totaling around $640.83 million, while short positions were liquidated for about $244.78 million. The largest liquidation happened on OKX, involving an $18.63 million Bitcoin swap.
Recent volatility in the Market resulted in substantial liquidation activity. In just one hour, $284.43 million was liquidated, predominantly from longs. The past 12 hours alone saw liquidations amounting to $552.54 million.
Bitcoin Continues to Dominate the Market
Despite the recent downturn, Bitcoin remains dominant in the cryptocurrency Market, with a Market cap of approximately $1.91 trillion. The total crypto Market capitalization stands at around $3.52 trillion, with Bitcoin dominating 54.14% of that share.
Crypto enthusiasts are particularly interested in how these fluctuations could influence the ongoing integration of cryptocurrencies and the rise of Web3 technologies in countries like Japan. As entities like Monex Group work to enhance the crypto ecosystem, the global markets will continue to keep an eye on Bitcoin’s performance and its intricate ties to broader crypto trends.
For more details on Bitcoin’s current Market status and crypto trends, visit CryptoSlate.
Tags: Bitcoin, cryptocurrency Market, crypto liquidations, Bitcoin price drop, Ethereum, XRP, Monex Group, Web3
What caused the Bitcoin flash crash to $90,200?
The Bitcoin flash crash happened because of sudden Market selling. Traders panicked and sold off their assets quickly, which led to a steep price drop. This was influenced by a mix of news, trading patterns, and Market psychology.
What are liquidations in cryptocurrency trading?
Liquidations happen when a trader’s position is automatically closed by an exchange due to not having enough funds to cover losses. In this case, more than $885 million in positions were liquidated when Bitcoin’s price fell hard and fast.
How do flash crashes affect regular investors?
Flash crashes can create huge price swings that affect everyone, including regular investors. These swings can wipe out investments quickly and create uncertainty in the Market. It’s important for investors to stay informed and have a strategy to deal with volatility.
What should I do during a Bitcoin flash crash?
If a flash crash happens, it’s essential to stay calm. Check the news to understand what’s going on before making any decisions. Many investors choose to hold their assets long-term rather than panic sell, which can often lead to more losses.
Can flash crashes be predicted?
While experts analyze Market trends, predicting flash crashes is very difficult. They can be triggered by various factors, including Market sentiment and large trades. It’s helpful to be aware of Market conditions and have a plan in place to react quickly when necessary.
