Mike Smith
December 6
.png)
From December 5 to 6, Bitcoin demonstrated extreme volatility. The price of the first cryptocurrency fell from a maximum of $104,000 to $90,500, after which it rose again to $98,000. This decline amounted to more than 13% at the peak, although the rate of decline has gradually slowed to 3.8% at the time of writing.
Analysts attribute this to a correction against the backdrop of high leverage. According to Rachel Lucas of BTC Markets, active trading using borrowed funds led to massive stop-loss triggering and forced closure of positions.
"Many traders, succumbing to FOMO, opened long positions at the highs, while large players used this to distribute assets," the expert explained.
According to Coinglass, liquidations reached $564 million, the highest since June 2024. Despite this, Lucas notes that such events help normalize the market situation, reducing excess leverage and creating conditions for recovery.
At the Emergence conference, venture capital founders expressed optimism, emphasizing that there are no signs of an end to the current bullish trend. Experts note that retail investor engagement remains below the level of previous cycles, which leaves room for further growth.
Amid the sharp decline in Bitcoin, altcoins showed stability. The largest digital assets in the top 10 by capitalization have maintained moderate growth rates over the past 24 hours, indicating cautious optimism among investors.
Earlier, Donald Trump publicly congratulated the crypto community on Bitcoin reaching $100,000, noting the significance of this event for the digital market.
After Bitcoin overcame a psychologically important mark, ForkLog experts also spoke about the cryptocurrency’s future prospects, offering a cautious but positive view of its future.
