Bitcoin’s Thursday Flash Crash Wiped Out $500 Million: What’s Driving The Volatility?
Posted On December 6, 2024
Bitcoin‘s (CRYPTO: BTC) volatile trading around the $100,000 mark has sparked heated debate about what it driving the increased volatility.
What Happened: On Thursday, Bitcoin reached $103,000 before experiencing a sharp flash crash to $92,000, driven by aggressive profit-taking and cascading liquidations in an overheated derivatives market.
According to Coinbureau co-founder Nic Puckrin, realized profits hit their highest levels since November 2021, echoing a past scenario that triggered a significant correction.
The crash wiped out $500 million in liquidations within 24 hours but found support in the $92,000–$94,000 liquidity zone. BTC has since rebounded, …
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