Bitcoin’s price experienced a volatile performance on Monday, dropping from around $94,000 to below $90,000 by 9:35 a.m. EDT. After this decline, BTC partially recovered, hovering between the $92,300 to $93,000 range.
The day started with a dramatic display of volatility for bitcoin (BTC). At 1:25 a.m. EDT, the asset was trading above $94,000, but this level proved to be short-lived. As the sun rose on the East Coast, BTC fell below the $90,000 threshold, reaching an intraday low of $89,164 per coin. This sharp decline triggered a series of liquidations in cryptocurrency derivatives markets, resulting in a loss of $704.58 million within 24 hours.
Notably, $305.67 million of liquidated positions, including $245.74 million in long bets, occurred within a four-hour period. According to coinglass.com, a staggering 255,481 traders experienced liquidations in the past day. The largest single liquidation was an $8.21 million BTC derivatives position on Binance. Monday’s downturn, along with a broader bearish trend in the previous week, has further impacted market sentiment.
Market observers have divided predictions: some expect BTC to test the $80,000 range, while more pessimistic forecasts suggest a slide towards $70,000. Others envision a potential resurgence tied to significant macro events, such as the inauguration of President-elect Donald Trump. Beyond bitcoin, the wider crypto market has also been affected by the turbulence. Ethereum (ETH) is struggling to maintain the $3,000 mark, while solana (SOL) and cardano (ADA) have experienced the greatest losses among the top ten cryptocurrencies, dropping 6% and 7% respectively.
The erratic fluctuations in bitcoin’s price highlight its dual role as a speculative instrument and a gauge of sentiment within the crypto sphere. While some anticipate a resurgence driven by broader economic catalysts, the market’s collective mindset remains uncertain. The combination of liquidations, downward pressures, and investor speculation indicates a critical moment for the short-term direction of digital assets. By 10:30 a.m. ET, BTC was trading at $92,344 per coin.
