Bitcoin Experiences Sudden Price Fluctuation with Significant Market Impact

On Thursday, Bitcoin, the leading cryptocurrency, experienced a dramatic price drop, hitting a low of $92,000 within just a few minutes. This sharp decline, which amounted to a 6.3% decrease, led to a wave of liquidations in the crypto market exceeding $1 billion.

The plunge began at 5:26 PM ET and was followed by a quick recovery, with Bitcoin rebounding to over $97,600 shortly afterward. However, it settled slightly lower at $97,100, reflecting a daily loss of 1.7%. Despite this, Bitcoin has seen a remarkable rise of over 39% in the last 30 days, driven by strong bullish sentiment surrounding political developments involving President-elect Donald Trump.

This sharp price movement triggered more than $1.07 billion in liquidations across the cryptocurrency market, with approximately 80% of these liquidations—around $817 million—originating from long positions that speculated on price increases. Moreover, Bitcoin long liquidations escalated to more than $390 million within just four hours following the price drop.

Analysts emphasize that market participants should remain vigilant about potential profit-taking during such volatile conditions, as assets typically do not appreciate indefinitely in a straight line.

The sudden price movement follows a remarkable rise in Bitcoin's value, which previously surged above the significant $100,000 mark late on Wednesday evening, reaching record highs of over $103,000. This increase has largely been attributed to Trump's re-election campaign, which has been notably supportive of the cryptocurrency sector.

Trump recently claimed responsibility for Bitcoin's achievement of the $100,000 milestone, coming just after his announcement regarding the nomination of Paul Atkins, a former Securities and Exchange Commission (SEC) commissioner, as the next chair of the SEC. Atkins is perceived as a more favorable figure for the cryptocurrency industry compared to the current chair, Gary Gensler.

The ongoing developments within the cryptocurrency market, alongside political influences, continue to shape the sentiments of investors and the overall trajectory of crypto assets.

Bitcoin, Liquidation, Crypto