Bitcoin's price experienced a volatile day on Monday, dropping from around $94,000 to under $90,000 by 9:35 a.m. EDT. However, it later partially recovered and remained within the range of $92,300 to $93,000.
The day started with significant volatility for Bitcoin (BTC). At 1:25 a.m. EDT, the price surpassed $94,000, but this level was short-lived. As morning arrived on the East Coast, BTC fell below $90,000, reaching a 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 just 24 hours.
Notably, $305.67 million of the liquidated positions, including $245.74 million in long bets, occurred within a four-hour period. According to coinglass.com, a staggering 255,481 traders had their positions liquidated in the past day. The largest single liquidation was an $8.21 million BTC derivatives position on Binance. Monday's downturn, combined with a broader bearish trend in the previous week, has further strained market sentiment.
Market observers have differing predictions: some believe BTC may test the $80,000 range, while more pessimistic forecasts suggest a slide towards $70,000. Others anticipate a potential resurgence, linked to significant macro events like the inauguration of President-elect Donald Trump. Apart from Bitcoin, the broader 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 losses of 6% and 7% respectively among the top ten cryptocurrencies.
The erratic fluctuations in Bitcoin's price highlight its dual role as both a speculative instrument and a gauge of sentiment in the crypto sphere. While some foresee a resurgence driven by broader economic factors, there is uncertainty prevailing in the market. The convergence 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.