Bitcoin Experiences Dramatic Price Fluctuations

On Thursday, Bitcoin, the world's largest cryptocurrency, experienced a sudden drop in price, plummeting to its lowest value in over a week. This unexpected decline occurred within just a few minutes, resulting in over $1 billion worth of liquidations in digital assets across the market.

The rapid price drop began at 5:26 pm ET, where Bitcoin fell by 6.3%, reaching a low of $92,000 within a mere three minutes. However, it quickly recovered, rising back above $97,600 before experiencing a slight decrease of 1%, according to data from Coinbase.

Despite a daily loss of 1.7%, bringing the price down to $97,100, Bitcoin remains robust, showing an impressive increase of over 39% in the past 30 days. This upward trend is largely attributed to the strong bullish sentiment surrounding President-elect Donald Trump.

The price fluctuations triggered an astounding $1.07 billion in liquidations throughout the cryptocurrency market, with approximately 80% of this—around $817 million—stemming from long positions that bet on rising prices, as reported by CoinGlass.

In the last few hours, long position liquidations in Bitcoin surged to more than $390 million. Experts suggest that traders should be cautious of profit-taking in a volatile market, as prices rarely rise in a straight line without correction.

The preceding day's events included Bitcoin making headlines by surpassing the notable $100,000 mark late Wednesday, reaching record highs above $103,000. This surge in cryptocurrency prices has been widely associated with Trump’s re-election campaign, characterized by his pro-crypto stance and promises to support the industry.

On Thursday, Trump took to the platform to credit his campaign for Bitcoin’s ascent past the $100,000 threshold. His announcement came just after he appointed Paul Atkins, a former SEC commissioner, as the new chairman of the Securities and Exchange Commission. Atkins is anticipated to be a more favorable regulatory partner for the cryptocurrency market compared to the current chairman, Gary Gensler.

Bitcoin, Liquidations, Cryptocurrency