Bitcoin Falls Below $98,000 Amid Weekend Liquidation Frenzy

Key Takeaways:

• Bitcoin retreated to $95,800 after failing to break the $100,000 mark on November 24, sparking significant sell-offs.
• Over $470 million in crypto positions were liquidated within 24 hours, with altcoins accounting for the majority.
• Analysts predict resilient demand for Bitcoin and a favorable crypto regulatory environment under Donald Trump.

The recent attempt of Bitcoin to surpass the psychological $100,000 mark ended in a sharp retreat, triggering widespread liquidations across the cryptocurrency market. 

The world’s largest cryptocurrency dipped to a three-day low of $95,800 before stabilizing just below $98,000.

$470 Million Liquidated Amid Market Turbulence

In the past 24 hours, over $470 million worth of crypto positions were liquidated, highlighting the fragility of market sentiment at key price levels. 

Crypto liquidations reached $470M on Nov. 24 as Bitcoin retraced and altcoins surged. pic.twitter.com/3MztxuMKCz

— cryptothedoggy (@cryptothedoggy) November 25, 2024

Long positions accounted for most of the liquidation, with $352.6 million wiped out, while short positions totaled $119.9 million, CoinGlass data revealed.

Bitcoin and Ethereum saw combined liquidations of $108.9 million, while several altcoins bore the brunt of the market correction. 

Dogecoin, Ripple, and Stellar recorded liquidations of $33.1 million, $27.6 million, and $21.6 million, respectively. Other affected assets are Solana, Avalanche, Polkadot, and Cardano.

This wave of liquidations came after an unprecedented rally in many altcoins from the 2020-2021 cycle. 

Stellar, for instance, surged by 50% over November 23-24, while Dogecoin reached its highest level since May 2021.

Despite the market turbulence, analysts remain bullish on Bitcoin’s prospects. 

According to a note by QCP Capital, the recent price swings are unlikely to deter the strong demand from both retail and institutional investors. 

The firm pointed to central banks easing monetary policies as a critical factor supporting Bitcoin’s price trajectory into year-end.

Additionally, Donald Trump’s election victory has introduced a wave of optimism among cryptocurrency enthusiasts. 

His promises to implement crypto-friendly policies and reform regulatory oversight have bolstered sentiment. 

Market participants eagerly anticipate his appointment of a new Securities and Exchange Commission (SEC) chair following Gary Gensler’s resignation announcement. 

Gensler, often criticized for his stringent regulatory approach, was a focal point of Trump’s campaign rhetoric, with vows to replace him celebrated by the crypto community.

Ripple surged to a three-year high of $1.59 on speculation that the SEC may withdraw its lawsuit against Ripple Labs under the new administration. 

Ripple’s legal battle with the SEC has been a key focus for crypto investors, and a favorable resolution could further boost confidence in the market.

Bitcoin Spot ETFs and Market Dominance

In the exchange-traded fund (ETF) market, demand for U.S.-listed spot Bitcoin funds remains high. 

BlackRock's iShares Bitcoin Trust ETF (IBIT) continues to dominate inflows and trading volumes among its competitors, underscoring institutional investors' growing appetite for Bitcoin.

Bitcoin's dominance in the cryptocurrency market has climbed to 56.2%, with total capitalization reaching $3.46 trillion. 

$BTC dominance is now at 59%. My guess is that dominance topped out days ago and is heading to 35%.

In other words: altseason has just started. pic.twitter.com/JK59tRiPit

— Alejandro₿TC (@Alejandro_XBT) November 24, 2024

This reflects the continued trust in Bitcoin as a store of value amid shifting macroeconomic and political landscapes.