Bitcoin experienced a dramatic price drop to $94,249, which acted as a trigger for a widespread market selloff. This downturn in the market resulted in the liquidation of $1.5 billion in crypto derivatives, heavily impacting traders globally. Over 514,384 traders faced liquidations, with the majority being long positions, amounting to $1.38 billion.
The sudden crash was particularly surprising as it came shortly after Bitcoin reached a historical peak of $103,679 on December 4th. Despite this peak, the sharp decline affected the broader cryptocurrency market. Major cryptocurrencies, such as Ethereum, fell by 8%, dropping below the $3,800 mark.
Other altcoins also faced severe declines, with many experiencing double-digit percentage losses. This market-wide repercussion highlights the volatility and the interconnected nature of the cryptocurrency market dynamics. Such sharp corrections are reminders of the inherent risks involved in cryptocurrency trading.