Bitcoin Plunges $6K in Minutes, Rebounds to $98K Following Massive Liquidations

On Thursday, Bitcoin, the largest cryptocurrency, experienced a dramatic drop, hitting its lowest point in over a week in just a few minutes. This swift decline resulted in over $1 billion worth of liquidations in the digital asset market, triggering significant reactions among investors.

The plunge occurred at 5:26 PM ET, when Bitcoin's price fell by 6.3%, reaching a low of $92,000 within only three minutes. Shortly after this plunge, Bitcoin quickly bounced back above $97,600 but then saw another minor dip of 1%, according to data from Coinbase.

By the end of the day, Bitcoin saw a slight decrease of 1.7%, settling at around $97,100. Despite this daily decline, Bitcoin has surged more than 39% over the last month, fueled by positive sentiment surrounding President-elect Donald Trump.

This price movement caused liquidations exceeding $1.07 billion across the market, with a striking 80% of these—approximately $817 million—originating from long positions, as reported by CoinGlass data.

Furthermore, long liquidations for Bitcoin have escalated to more than $390 million in just the last four hours. Analysts noted that traders need to be cautious about “profit taking” during such volatile swings, reminding them that asset prices rarely maintain a steady upward trajectory indefinitely.

The day’s activity came on the heels of Bitcoin surpassing the significant $100,000 mark late Wednesday, where it briefly reached record levels above $103,000. The recent bullish trend in Bitcoin and other cryptocurrencies has been widely attributed to Trump's pro-crypto policies and promises to support the industry.

On Thursday, Trump took credit for this surge, particularly Bitcoin's breakthrough past the $100,000 milestone, coincidentally following his appointment of the next chairman for the Securities and Exchange Commission (SEC).

Trump has chosen Paul Atkins, a former SEC commissioner, to lead the agency in the upcoming year. Atkins is seen as more favorable to the cryptocurrency industry compared to the current SEC Chair, Gary Gensler.

Bitcoin, Liquidation, Crypto