Bitcoin experienced an unexpected drop below $95,000, its lowest level since May, triggering a wave of liquidations that impacted thousands of traders and increased pressure across the crypto market.
The sudden decline extended the fall that began from the November 11 high of $107,482, putting Bitcoin on the edge of erasing its annual gains after reaching a record $126,251 in October and closing 2024 at $93,714.
The impact resulted in over $1.38 billion in liquidations across the crypto market, with roughly half concentrated in BTC pairs, totaling $676 million in Bitcoin alone. The largest individual event was a $44 million BTC long on HTX. The liquidation affected 278,152 traders, with long positions taking the brunt at $1.21 billion, compared to $157 million in shorts.
Paolo Ardoino, Tether CEO, reacted to the crash on Twitter, calling it a “Bitcoin Black Friday,” highlighting the magnitude and surprise of the drop. Meanwhile, Ki Young Ju, CEO of CryptoQuant, warned that it is still premature to declare a bear market unless the key $94,000 support breaks. According to him, those who entered Bitcoin six to twelve months ago have a cost basis near that level, and losing it could confirm a bearish cycle.
The pullback occurs in the context of risk aversion across global markets. Investors withdrew nearly $900 million from crypto ETFs, while economic data from China and fading expectations of a Federal Reserve rate cut increased pressure on the market. Tether (USDT) dominance reached its highest level since April, a metric historically associated with Bitcoin bear markets.
BTC Must Hold Above $94K to Avoid a Deeper Drop
Technically, Bitcoin hit a low of $94,455, falling 7% in 24 hours. Immediate resistance sits around $100,000, and the recovery will depend on the market’s ability to maintain support near $94,000. This correction follows a period of high volatility and record highs, and the yearly consolidation could still redefine the trend. Currently, BTC trades at $95,650, down 3%.
The crypto market now faces a high-pressure scenario, where recent liquidations and selling pressure on Bitcoin traders are testing BTC’s resilience.
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.