Bitcoin is holding steady at approximately $98,000 after a volatile trading period that saw over $500 million in liquidations across the cryptocurrency market.
The token had surged past $99,000 on Thursday, sparking optimism about reaching $100,000, but later dropped to a three-day low of $95,800 before regaining some ground.
Widespread liquidations shake the Crypto market
The sharp price movement led to one of the largest liquidation events of the year, with $505.99 million liquidated within the last 24 hours. This included $380.42 million from long positions and $125.58 million from short positions. Bitcoin accounted for $77.9 million of these liquidations, underscoring its significant influence on the market.
Other major cryptocurrencies also experienced heavy losses. Ether faced over $41 million in liquidations, while Dogecoin and XRP saw $34.6 million and $30.41 million, respectively. Data shows that nearly 196,851 traders were liquidated during this period, reflecting the heightened volatility affecting the entire crypto space.
Optimism remains high for Bitcoin’s $100,000 target
Despite the pullback, analysts remain confident that Bitcoin could reach $100,000 by year-end. Many point to strong demand and easing monetary policies worldwide as key factors that could drive the price higher.
QCP Capital noted that these dynamics are likely to sustain Bitcoin’s momentum in the coming weeks. Crypto analyst Miles Deutscher also commented on the market’s activity, noting that although segments of the market appear disconnected, increased attention could lead to greater liquidity and potential growth in the altcoin market.
Trump administration sparks renewed Crypto sentiment
Bitcoin’s price has surged by over 44% since Donald Trump’s election on November 5, fueled by investor confidence in the incoming administration’s pro-crypto stance. Trump has promised to prioritize policies encouraging growth in the digital asset industry and boosting optimism among traders and investors.
The expected resignation of Gary Gensler, the current SEC chair, has also contributed to the positive sentiment. Gensler has been criticized for his strict regulatory approach toward cryptocurrencies. During his campaign, Trump pledged to replace Gensler with someone more supportive of the industry, raising hopes for a more favorable regulatory environment. With Bitcoin currently trading at $98,215, market watchers closely monitor its trajectory as the year concludes. Many believe strong demand and policy changes could help Bitcoin surpass the $100,000 milestone.