Crypto Rally Over? Here’s Why Bitcoin Price Dropped Below $100K
Qadir AK6 Dec 20243 min read
Bitcoin briefly crossed the $100,000 milestone on Thursday, sparking excitement across the crypto market. However, the rally didn’t last long. By the end of the day, the price dropped nearly 10%, briefly testing the support level at $92,000. As of early Friday, December 6, Bitcoin was trading around $97,680, confirming that yesterday’s move above $100,000 was only a temporary breakout.
In the past 24 hours, the sudden selloff wiped out over $900 million across the crypto market. Bitcoin trading pairs were the hardest hit, with $498 million in liquidations, including $421 million from long positions.
What Triggered Bitcoin’s Sudden Drop?
High Open Interest but Weak Volume
Bitcoin’s Open Interest (OI) soared to $129 billion, with a trading volume of $466 billion in the last 24 hours, reflecting strong investor interest. However, the rally lacked support from sufficient trading activity. Even with $1 billion in fresh Tether (USDT) minted on Ethereum, the low trading volume compared to the market buzz made a pullback inevitable.
This correction, while sharp, is seen by analysts as a healthy reset to attract more buyers and build momentum for another push beyond $100K.
Whales Take Profits
On-chain data shows that some whale investors took advantage of Thursday’s price pump to lock in profits. Retail traders, meanwhile, continued to buy in anticipation of further gains.
Notably, Chinese tech firm Meitu disclosed it had sold all 948 of its Bitcoin holdings in the last 24 hours. Despite the selloff, some whale investors re-entered the market after the price drop, signaling confidence in a fresh rally soon.
Bitcoin’s dramatic price swings have everyone talking—read our Bitcoin price prediction to find out what’s next for the crypto king!
Altcoins Gain Momentum as Bitcoin Cools Off
While Bitcoin struggled to hold $100,000, the altcoin market saw renewed strength. The TOTAL2 market cap, which excludes Bitcoin, grew by over 3% in the last 24 hours to approximately $1.57 trillion. Ethereum (ETH) was a standout performer, breaking past the critical $3,800 resistance and heading toward its all-time high.
Bitcoin’s dominance in the crypto market fell by 1% on Friday, landing at 55%. This decline highlights a shift in focus toward altcoins, many of which are gaining traction as traders diversify their investments.
The crypto market never stops surprising us – stay on your toes at all times!
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FAQs
- Bitcoin lacked trading volume support despite high investor interest, leading to a pullback and a temporary price correction.
