Bitcoin surged past the $99,000 mark on Christmas Day, driven by a wave of renewed optimism that reinvigorated the cryptocurrency market.
Bitcoin’s Rebound After a Weekly Low
Data from CryptoSlate shows that the leading digital asset gained more than 5% over the last 24 hours, bouncing back from a weekly low of $92,973. As of the latest update, Bitcoin was trading at $98,000, indicating that the price recovery, while significant, was short-lived after days of downward movement.
Altcoins Follow Bitcoin’s Upward Trend
Altcoins also joined in on the rally, with Ethereum, XRP, and Solana all recording gains exceeding 4%. This broad market recovery has contributed to a 3.5% increase in the global crypto market cap, which now stands at $3.44 trillion.
Crypto Market Sentiment Shifts to Greed
The market sentiment has shifted, with the Crypto Fear and Greed Index rising to 73, indicating a “Greed” sentiment. This positive trend is consistent with predictions from Santiment, a blockchain analytics firm. Santiment highlighted that market rebounds often follow periods of panic-driven sell-offs, allowing larger investors—often referred to as “whales”—to accumulate assets at lower prices.
The firm stated:
“Historically, when retail traders begin to sell based on panic and emotion, whales and sharks have opportunities to scoop up more coins with little resistance, creating bounces.”
$300 Million in Liquidations Amid Market Volatility
Despite the market’s positive movement, the recent rally has been marked by significant volatility. According to CoinGlass data, more than $290 million in liquidations occurred within the past 24 hours, affecting 105,883 traders.
Impact on Short and Long Positions
Short positions were hit hardest, with $162 million in losses as Bitcoin prices rose. Long positions, on the other hand, which were betting on continued price increases, experienced $128 million in liquidations. Bitcoin traders faced the greatest liquidation losses, totaling $78 million, while Ethereum traders saw $51 million wiped out.
Major Liquidation on Okx Exchange
The largest single liquidation during this period occurred on the Okx exchange, involving a $6.9 million ETH-USDT transaction. This highlights the heightened volatility in the market as traders continue to adjust to rapid price changes
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