After finally achieving the much-anticipated six-figure price tag, Bitcoin did the most Bitcoin thing ever, and suddenly crashed below $94,000.
Just yesterday, Bitcoin finally hit that elusive $100,000 mark, a psychological milestone that crypto diehards have been anticipating for years. Yet, the triumphant vibes didn’t last long. Within a matter of hours, the price collapsed, rattling traders who had been convinced that a stable foothold above the $100K level was a done deal.
Source: BNC Bitcoin Liquid Index
The slump began in the early hours of Thursday morning, with Bitcoin’s value losing nearly 6% in a rapid-fire sell-off. According to data from BNC, the world’s largest cryptocurrency was trading around $99,500 just before the fall, only to slam into the $93,700 range without warning. Some analysts pinned the blame on large-scale liquidations, particularly those tied to leveraged positions on major exchanges—essentially a cascade of margin calls forcing traders to dump their holdings all at once. In the past 24 hours, 211,642 traders were liquidated in crypto, with the total liquidations coming in at $1.08 billion.
Source: X
A leverage flush is good for market structure, however, the sudden drop also comes amid a broader macroeconomic backdrop that’s been anything but calm. Traditional equities are wobbling, central banks continue to hint at shifting monetary policies, and many investors are grappling with how to hedge their bets going into 2025.
Still, Bitcoiners remain unfazed, arguing that a plunge like this is merely a blip on the radar. After all, the digital asset’s 2024 trajectory has been one long roller coaster ride, and plenty of folks argue that short-term dumps are par for the course. Whether this latest swoon is a wake-up call for traders sitting on razor-thin margin positions or just another bump in the ever-turbulent crypto road remains to be seen. But, given the market’s track record, don’t bet against this wild ride delivering a few more shocking turns before the year wraps up.
And remember folks, the only thing sweeter than crossing the $100,000 per Bitcoin threshold is doing it TWICE!
