Bitcoin’s descent below $100,000 has triggered a wave of panic among traders, erasing $412 million in leveraged positions within 24 hours.
Bitcoin’s BTC $98 237 24h volatility: 1.4% Market cap: $1.94 T Vol. 24h: $87.25 B rapid descent below $100,000 has triggered a wave of panic among traders, erasing $412 million in leveraged positions within 24 hours. The market turbulence marks a sobering moment for investors who believed the six-figure milestone would be a point of stability rather than freefall.
Data from CoinGlass shows that over 79.57% of the liquidations occurred in long positions, with platforms like Binance, OKX, KuCoin, and Bybit reporting record-breaking losses.
The widespread liquidations affected 161,442 traders, with Bitcoin (BTC) contributing approximately 12.62% — or $52 million — to the total.
The liquidation impact extended beyond Bitcoin, shaking the broader crypto ecosystem. Ethereum ETH $3 860 24h volatility: 2.9% Market cap: $465.01 B Vol. 24h: $27.48 B , often seen as the second pillar of the market, suffered $46 million in liquidations with most of the losses coming from long traders who anticipated a price surge above its current levels.
On Friday, December 6, Ethereum crossed the $4000 level for the first time since March 2024 when it briefly touched the threshold. Despite the recovery, the digital asset still lacks the momentum to break out of the cycle. The Vitalik Buterin-owned token is also far from crossing its previous all-time high of 4,878, recorded in November 2021 during the last bull market.
Meanwhile, Ethereum is not the only altcoin affected by the liquidation, Ripple’s XRP XRP $2.38 24h volatility: 6.1% Market cap: $136.07 B Vol. 24h: $11.86 B , Cardano ADA $1.12 24h volatility: 8.0% Market cap: $40.01 B Vol. 24h: $1.98 B , Dogecoin DOGE $0.43 24h volatility: 5.4% Market cap: $63.55 B Vol. 24h: $7.84 B and other cryptocurrencies collectively registered $108.02 million in liquidations.
The market meltdown had its roots in geopolitical uncertainty. It began last week when South Korean President Yoon Suk Yeol announced the passage of martial law on live television on December 3. The President stated that the law was a response to “threats posed by North Korea’s communist forces” and aimed to “eliminate anti-state elements.”
The announcement sent shockwaves through South Korea’s financial markets, including its crypto sector. Bitcoin’s price against the South Korean won plummeted by 30% on local exchanges like Upbit. This significant drop rippled across global markets, pushing Bitcoin’s price as low as $96,000.
Adding to the confusion, President Suk Yeol had a sudden change of heart. The martial law declaration was lifted around 4:30 a.m. local time during a Cabinet meeting after 190 lawmakers in the 300-member parliament voted to reject the order, according to local reports. While the reversal eased political tensions, the damage to market confidence had already been done.
The geopolitical turmoil compounded existing fears over rising US Treasury yields and potential regulatory crackdowns, creating the perfect storm for a market-wide sell-off. Leveraged traders bore the brunt as cascading liquidations accelerated the downturn, further destabilizing prices.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
