The cryptocurrency market has experienced heightened volatility in recent days. After failing to breach the $100,000 resistance level, Bitcoin (BTC) dropped below $96,000, currently trading at $95,568—a 2.85% decline. This downward trend has pulled most altcoins into the red zone.
Market-Wide Liquidations Exceed 117K Traders
Coinglass data reveals staggering liquidation figures:
- 24-hour liquidations: 117,800 traders
Total value wiped out: $290 million
- Long positions: $230 million (79.3%)
- Short positions: $57.53 million (20.7%)
Major cryptocurrencies followed Bitcoin's bearish momentum:
- Ethereum (ETH)
- Dogecoin (DOGE)
- Cardano (ADA)
December's Rollercoaster: From ATH to Extreme Volatility
The past month has seen wild price swings:
- December 18: BTC hit a record $108,000
- December 19: Crashed below $100,000
December 20: Plunged to $93,000, causing:
- 420,000 liquidations
- $1.4 billion in losses
- Subsequent days: BTC oscillated between $92,500–$99,900
$14B Bitcoin Options Expiry Looms
All eyes are on Friday's historic event:
- Total contract value: $14 billion
- Put/Call ratio: 0.69 (7 puts per 10 calls)
Market impact:
- Represents 44% of all BTC options OI ($32B total)
- Over $4B expected to expire in-the-money
- Deribit's DVOL index shows elevated volatility
👉 How institutional traders are positioning for the expiry
MicroStrategy Doubles Down on BTC Accumulation
The corporate Bitcoin whale remains bullish:
- Recent purchase: 5,262 BTC ($561M) at ~$106,662/coin
- Strategic move: Seeking to increase authorized shares for more BTC purchases
- Milestone: Now included in Nasdaq-100 Index
- Current status: Among world's largest institutional BTC holders
Key Takeaways for Investors
- Monitor derivatives market flows
- Watch $90K–$95K support levels
- Prepare for post-expiry volatility
👉 Essential tools for tracking crypto market sentiment
FAQ: Navigating Bitcoin's Volatility
Q: Why did Bitcoin suddenly drop from $108K?
A: Profit-taking after ATH, combined with options market positioning and macroeconomic factors.
Q: Should I be worried about the $14B options expiry?
A: While it may cause short-term turbulence, the long-term trend depends on spot market demand.
Q: How does MicroStrategy's accumulation affect prices?
A: Their consistent buying reduces available supply, creating upward pressure.
Q: What's a reasonable support level for BTC now?
A: The $92K–$94K zone has shown strong historical support.
Q: Are altcoins riskier than Bitcoin in this market?
A: Yes—altcoins typically experience amplified volatility during BTC downturns.
Q: When might the next bullish cycle begin?
A: Market cycles depend on adoption rates, regulatory clarity, and institutional participation.