Update (Dec. 6, 12:38 am UTC): This article has been updated to correct the time Bitcoin’s price plunged below $93,000.
A sudden dip in the price of Bitcoin wiped out $300 million of long positions in the market as its price fell 5.47% within minutes on Dec. 5, briefly falling just below $93,000.
Between 10:23 am UTC and 10:28 am UTC, Bitcoin (BTC) dropped from $98,338 to $92,957.
Bitcoin’s price quickly rebounded
It has since rebounded to $96,410 at the time of publication, according to TradingView data.
Bitcoin is trading at $96,410 at the time of publication. Source: TradingView
The sudden price decline triggered over $303.48 million in liquidations of long positions within the hour, pushing total liquidations over the past 24 hours to $404 million, per data from CoinGlass.
Hartmann Capital founder Felix Hartmann believes there is a “70% chance” that was the end of the “flush” and a 30% chance “we go a bit lower.”
“That wipe cleared out most of the lever on BTC. Only reason we go lower is if it spooked enough people into taking profit,” Hartmann said in a Dec. 5 X post.
Plunge will go ‘down in history’
Pseudonymous crypto trader Smiley Capital said in a Dec. 5 X post that this day “truly goes down in history.”
“It took Bitcoin 3 minutes to drop ~10% which equals to ~200B drop. 180 seconds. 200 Billion dollars lower,” Smiley Capital said.
At the time of publication, Bitcoin’s market capitalization is $1.92 trillion. It comes only a day after Bitcoin breached the $100,000 price level for the first time before setting a new all-time high of $104,000.
Related: 4 new BTC price targets see Bitcoin over $124K by New Year
However, IG market analyst Tony Sycamore believes the sharp retrace could mean Bitcoin’s price plateauing in the short term.
“While we don’t see this as the end of the Bitcoin bull run, it does signal we are entering a consolidation phase in the days/weeks ahead,” Sycamore said in a Dec. 5 X post.
Source: Tony Sycamore
After Bitcoin reached an all-time high of $73,679 in March, it consolidated within a wide range of $53,000 and $72,000 for the next seven months.
On Dec. 5, Cointelegraph reported that the year had seen more than $31 billion in net inflows from the spot Bitcoin exchange-traded funds in the United States, along with tightened supply from Bitcoin’s fourth halving in April.
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