Between December 5 and 6, Bitcoin’s decline exceeded 13% at its lowest points, with the price plummeting from an ATH above $104,000 to $90,500, before rebounding to $98,000.
At the time of writing, the daily rate of decline had reduced to 3.8%.
Rachel Lucas from BTC Markets explained to The Block that the drop in the leading cryptocurrency’s price was due to “leverage unwinding,” triggering stop-losses and forced position closures.
“Excessive leverage by retail traders during Bitcoin’s all-time high exacerbated the situation. Many succumbed to FOMO, opening long positions at high levels, while whales strategically distributed their assets,” she explained.
The volume of liquidations surged to $564 million—the highest since at least June 2024.
Lucas noted that such events often bring leverage back to normal and lead to market stabilization with the potential for recovery.
Venture capital founders at the Emergence conference highlighted the lack of signs for the end of the bull run under current conditions. Experts surveyed pointed to the still low level of retail trader involvement compared to previous growth cycles as justification.
The decline in Bitcoin had little impact on sentiment in altcoins. Digital assets in the top 10 by market capitalization showed restrained growth rates over the past day.
Earlier, Donald Trump congratulated the crypto community on Bitcoin surpassing the $100,000 mark.
Analysts surveyed by ForkLog shared their forecasts after breaking through this psychological level.