The record-breaking Bitcoin rally also saw Bitcoin break €100,000 for the first time.
Bitcoin’s price momentum continues to break records, reaching a new all-time high.
On Dec. 16, data from CryptoSlate revealed that Bitcoin surged to a peak of $106,488 during Asian trading hours, marking a significant milestone for the world’s leading cryptocurrency. Following this high, the price stabilized around $104,771 at the time of reporting.
The surge reflects strong market demand and renewed investor confidence, with analysts pointing to increasing institutional interest and favorable macroeconomic factors as key drivers behind the rally. This new record highlights Bitcoin’s resilience and its continued dominance in the digital asset space.
This milestone further fuels Bitcoin’s impressive rally, which gained traction after Donald Trump’s election victory in November. Over the past month, the flagship cryptocurrency climbed over 15%, crossing the $100,000 threshold for the first time in its history. This upward momentum underscores Bitcoin’s continued strength and growing investor optimism.
In addition to its record-breaking performance in U.S. dollars, Bitcoin also set a new all-time high when priced in euros, reaching €101,212 before experiencing a slight pullback to €99,610, as reported by CoinMarketCap. This marks the first time the leading digital asset has surpassed the €100,000 barrier, reflecting its global appeal and rising demand across multiple markets.
The recent surge is driven by factors such as increasing institutional adoption, expectations of favorable regulatory developments, and Bitcoin’s growing reputation as a hedge against inflation. Market analysts suggest that this upward trajectory could continue as the cryptocurrency ecosystem matures and mainstream interest accelerates.
Crypto liquidation
The rapid surge in Bitcoin’s price has triggered significant liquidations across the cryptocurrency market. According to Coinglass, traders speculating on Bitcoin saw combined losses of $119 million within the past 24 hours, with the majority of these liquidations coming from bearish positions, or short trades, that bet against Bitcoin’s upward movement.
This sharp price movement highlights the volatility of the crypto market, where sudden price spikes can swiftly wipe out over-leveraged positions. Analysts note that traders who underestimated Bitcoin’s rally were caught off-guard, particularly as the flagship digital asset broke through key resistance levels.
Beyond Bitcoin, the broader crypto market also experienced liquidations, as short sellers faced cascading losses amid increasing investor confidence and buying momentum. This trend reflects a common dynamic during strong bull runs, where traders holding opposing positions face significant risks in volatile conditions.
Investor losses skyrocketed to a staggering $312 million over the same 24-hour period when factoring in other major cryptocurrencies. Data indicates that short traders—those betting on price declines—were hit the hardest, with losses exceeding $200 million. This highlights the extreme volatility of the crypto market during this bullish phase, where sudden price surges can wipe out leveraged positions in a matter of hours.
The widespread liquidations extended beyond Bitcoin, impacting assets like Ethereum, Solana, and other top altcoins, which also experienced sharp price movements. Analysts attribute these liquidations to traders underestimating the strength of the market’s upward momentum, particularly as Bitcoin broke past key psychological resistance levels.
This massive shakeout underscores the risks associated with leveraged trading in a market known for its unpredictability. While bullish traders benefited from the rally, the event serves as a stark reminder for short sellers of the dangers posed by price volatility during strong market upswings.
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Reference:
Adejumo, O. (2024, December 16). Bitcoin reaches new $106K ATH causing $313 million in liquidations. CryptoSlate. Retrieved from https://cryptoslate.com/insights/bitcoin-reaches-new-106k-ath-causing-313-million-in-liquidations/