Bitcoin Record a Ginormous Liquidation of $891 Million Long Positions in 24hour
Major tokens, including Solana, Ethereum, and Dogecoin, quickly rebounded to $237, $3,780, and $0.42 respectively, mirroring Bitcoin's resilience and stabilizing alongside it.
On Friday, December 6th, 2024, Bitcoin experienced a significant price correction, briefly dipping below $92,000, representing a sharp decline of over 10% from its all-time high of $104,000 achieved on Wednesday.
Following the sudden volatility, over $1 billion in liquidations across the cryptocurrency market occurred within 24 hours, with approximately $891 million stemming from long positions, according to data from CoinGlass.
Despite the initial shock, Bitcoin demonstrated remarkable resilience, rapidly rebounding to $98,100 at the time of writing. This swift recovery suggests a substantial underlying demand for Bitcoin, even amidst heightened market uncertainty.
Bitcoin and Altcoins Gains Momentum Amidst Market Volatility
The broader cryptocurrency market also exhibited notable stability. While altcoins experienced minor price reductions concurrent with Bitcoin’s downturn, their recovery proved equally swift.
Major tokens, including Solana, Ethereum, and Dogecoin, quickly rebounded to $237, $3,780, and $0.42 respectively, mirroring Bitcoin’s resilience and stabilizing alongside it. This coordinated market behavior underscores a level of underlying market confidence beyond the immediate volatility.
Bitcoin’s surpassing of the $100,000 milestone earlier on Thursday marked a significant achievement, signifying entry into a new price discovery phase. While future price movements remain inherently unpredictable, analysis suggests that long-term holders (LTHs) may be a pivotal factor in driving upward momentum.
According to CryptoQuant analyst Crazzyblockk, LTHs currently control over 14.5 million BTC, significantly exceeding the approximately 5 million BTC held by short-term holders (STHs).
This distribution, where LTHs command 74% of Bitcoin’s circulating supply, indicates sustained market confidence and a reduced likelihood of significant selling pressure.
Historically, bull market peaks have been characterized by STH participation exceeding 80%, driven primarily by speculative demand. However, the current market dynamic, with only 52% of the realized cap held by STHs, suggests considerable potential for future growth, as speculative selling appears limited.
The $100,000 milestone coincided with several pivotal developments. The appointment of former SEC commissioner Paul Atkins as chair of a relevant regulatory body and Federal Reserve Chair Jerome Powell’s comparison of Bitcoin to gold have both contributed to reinforcing Bitcoin’s status as a hard asset and attracting renewed market interest.
Consequently, Bitcoin’s dominance has surged to 57%, and its market capitalization has exceeded $2 trillion, solidifying its position as the seventh most valuable asset globally, surpassing entities such as Saudi Aramco and even silver in total valuation.
