On December 5, the crypto market experienced a surprising shock as Bitcoin‘s price plummeted by 5.47% within just a few minutes. This unexpected drop led to the liquidation of over €300 million in long positions.

What happened to Bitcoin‘s price?

Between 10:23 and 10:28 UTC, Bitcoin‘s price fell from $98,338 to $92,957. This sharp decline triggered a significant wave of liquidations in leveraged positions, resulting in a total of $404 million liquidated in the past 24 hours. Shortly after the dip, the price rebounded to $96,410, partially restoring confidence in the market.

A historic move

Crypto traders described this price action as historic. In just three minutes, Bitcoin lost nearly 10% of its value, equating to a $200 billion drop in market capitalization. This dramatic movement occurred just one day after Bitcoin broke the $100,000 barrier and reached an all-time high of $104,000.

What does this mean for the market?

Analysts suggest that this sudden correction is likely not the end of the bull market but rather a temporary consolidation phase. This provides the market with time to stabilize following the rapid price surges. However, caution is advised, as sharp fluctuations like these could encourage investors to take profits.

Bitcoin‘s fundamentals remain strong

Despite the volatility, interest in Bitcoin continues to grow. With net inflows of over $31 billion into U.S. Bitcoin ETFs this year and a reduced supply due to the recent halving, Bitcoin remains a dominant player in the financial landscape. For investors seeking a safe haven in times of economic uncertainty, Bitcoin remains an appealing choice.