Bitcoin (BTC) suffered a flash crash over the past hour, dropping from above $102,000 to $97,640. Though the source of this panic selloff remains unknown, it has amplified the combined market’s crypto liquidation to $649 million over the past 24 hours. Amid this negative outlook, the combined crypto market cap has retained a 54% surge to $3.56 trillion.

Bitcoin Long Traders Took the Heat

According to data from CoinGlass, a total of 181,646 have suffered liquidation as of writing. Bitcoin led the liquidation for the day with the total recorded loss at $216.95 million. Of this figure, long traders recorded more than half at $130 million, with short trader liquidation accounting for the rest.

Altcoins like Ethereum also faced intense liquidation, pegged at a dollar value of $81.81 million. XRP, Dogecoin (DOGE) and Solana (SOL) also fell by $39.41 million, $33.42 million and $24.15 million respectively.

This liquidation figure comes after Bitcoin price dropped as low as $97,640 in a rare show of market distress. There is ongoing recovery as of writing with the coin up 0.21% to $99,236.64. BTC price crossed the $100,000 mark for the first time on November 4. Following the price breakout, the coin soared as high as $103,900.

There are series of events that has forced an uptick in the price of the coin as many institutional investors like MicroStrategy bought more BTC. After sending 100% of all addresses on the network into profit, traders chose to exit some of their positions, forcing the market down.

Hopes for Grand Recovery

According to market analysts, BTC and many altcoins in the market are currently in a price discovery phase. Despite the current downturn, analysts like CryptoQuant Founder Ki Young Ju believes Bitcoin may not hit its peak until much later.

In a recent post on X, he advised the community to hold on to their coins and resist the desire to sell early.

Do not sell your #Bitcoin.

We’ve hit a new ATH, breaking one of the biggest psychological resistance levels and entering price discovery.

I repeat, DO NOT SELL YOUR BITCOIN. https://t.co/jicCvleaGg

— Ki Young Ju (@ki_young_ju) December 5, 2024

He is among the many top proponents that believes there is hope for grand recovery even if Bitcoin dips below the $100,000 psychological level.

With the growing anticipation of limited crackdown in the market with the nomination of Paul Atkins as US SEC Chairman, more investors might enter the market moving forward.

The rate of institutional investor entry into the market this quarter has hinted at a shift in traditional finance’s disposition to Bitcoin. With reduced supply and pent up demand, more bullish price marks are expected.

Read More: Peter Schiff Says Bitcoin Could Destroy The Dollar, Here’s How

The post $649 Million Liquidated as Bitcoin Price Drops Below $100,000 appeared first on CoinGape.

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Filed under: News - @ December 5, 2024 10:18 pm