Bitcoin (BTC) experienced extreme volatility on Monday, as the cryptocurrency saw a dramatic drop from around $94,000 to below $90,000 by 9:35 a.m. EDT.
After reaching an intraday low of $89,164, Bitcoin managed to partially recover, trading between $92,300 and $93,000 later in the day.
From $94K to $89K: Bitcoin’s Wild Day
The price of Bitcoin began Monday above $94,000 at 1:25 a.m. EDT, but it quickly lost momentum. By the morning, BTC had dropped below $90,000, triggering a cascade of liquidations in cryptocurrency derivatives markets.
In just 24 hours, $704.58 million worth of positions were liquidated, with $305.67 million of this occurring within a four-hour period. Of these liquidations, $245.74 million were long positions.
The largest single liquidation was a $8.21 million BTC position on Binance. Over the course of the day, 255,481 traders saw their positions wiped out. The sharp drop, coupled with a general bearish trend over the past week, has dampened market sentiment.
Market Predictions: Will Bitcoin Test $80K or Fall to $70K?
Market analysts are divided in their predictions for Bitcoin’s next move. Some expect BTC to test the $80,000 range, while others fear a further slide to $70,000.
There is also speculation that Bitcoin could experience a resurgence, possibly linked to macroeconomic events such as the inauguration of President-elect Donald Trump.
Broader Crypto Market Suffers Alongside Bitcoin
The volatility in Bitcoin has also affected the broader cryptocurrency market. Ethereum (ETH) is struggling to maintain the $3,000 mark, while Solana (SOL) and Cardano (ADA) have taken harder hits, with losses of 6% and 7%, respectively.
The erratic price movements of Bitcoin emphasize its role as both a speculative asset and a barometer for broader market sentiment.
As liquidations pile up and uncertainty grows, the direction of the crypto market remains uncertain. By 10:30 a.m. EDT, Bitcoin was trading at $92,344.
