{"id":26228,"date":"2024-12-06T07:11:56","date_gmt":"2024-12-06T07:11:56","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=26228"},"modified":"2024-12-06T07:11:56","modified_gmt":"2024-12-06T07:11:56","slug":"bitcoin-recovers-from-leverage-induced-flash-crash-below-93k","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=26228","title":{"rendered":"Bitcoin Recovers From Leverage-Induced Flash Crash Below $93K"},"content":{"rendered":"

Bitcoin prices dumped to $92,980 during late trading on Dec. 5. The move follows an all-time high<\/a> earlier the same day when the asset came just short of $104,000 on Coinbase.<\/p>\n

The 10% flash crash wiped around $10,000 off the price of BTC as another leverage-induced liquidation event occurred.<\/p>\n

BREAKING: #Bitcoin<\/a> briefly falls -$8,000 in 90 minutes to a daily low of $92,000.<\/p>\n

Bitcoin has since rebounded +$5,000 off of its low but continues to trade in volatility. pic.twitter.com\/7hqeSQl1LW<\/a><\/p>\n

\u2014 The Kobeissi Letter (@KobeissiLetter) December 5, 2024<\/a><\/p>\n\n

BTC Flash Crash<\/h2>\n

The return to five figures<\/a> came as mainstream media outlets around the world reported Bitcoin\u2019s milestone high above $100,000 for the first time.<\/p>\n

\u201cAn interesting post-mortem about this move is that the ETFs didn\u2019t follow it at all,\u201d observed analyst \u2018lowstrife\u2019 who added:<\/p>\n

\u201cThis was entirely a spot bitcoin move driven by, you guessed it, leverage.\u201d<\/p>\n

\u201cIf this is what a couple of degens in Asia can do, what would Saylor do to the market if (when?) he needs to liquidate his coins to pay back loan obligations? That is a hell of a lot bigger than this,\u201d he said.<\/p>\n

Bitcoin pioneer Adam Back observed that there was \u201centirely too little market making\u201d before adding, \u201cEven a few minutes of a 4% gap between IBIT and spot BTC, come on!\u201d<\/p>\n

An interesting post-mortem about this move is that the ETF\u2019s didn\u2019t follow it at all. This was entirely a spot bitcoin move driven by, you guessed it, leverage. pic.twitter.com\/nSIFpXMsbW<\/a><\/p>\n

\u2014 lowstrife (@lowstrife) December 5, 2024<\/a><\/p>\n\n

According to Coinglass, 163,587 traders were liquidated<\/a> over the past 24 hours, and the total wrecked value came in at over $900 million, 80% of them long positions.<\/p>\n

\u201cNear the end of the week, a sharp downward shot cleared a wave of leverage, other coins didn\u2019t follow suit, and the long side of the overall crypto market is very strong,\u201d commented<\/a> crypto derivatives provider Greeks Live.<\/p>\n

The crash and correction have returned the asset to its range-bound channel, where it has been trading since mid-November.<\/p>\n

At the time of writing, during early trading in Asia on Friday morning, BTC was changing hands for around $97,600.<\/p>\n

Bitcoin ETFs Still Bullish<\/h2>\n

As observed above, spot Bitcoin ETFs did not blink while spot markets<\/a> were flushed of their leverage.<\/p>\n

The 11 spot Bitcoin ETFs in the US saw solid momentum, with an aggregate inflow of $748 million on Thursday. The BlackRock IBIT fund led the pack with an inflow of $751.6 million, while Grayscale\u2019s GBTC outflowed $149 million, according to Coinglass.<\/p>\n

The post Bitcoin Recovers From Leverage-Induced Flash Crash Below $93K<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin prices dumped to $92,980 during late trading on Dec. 5. The move follows an all-time high earlier the same day when the asset came just short of $104,000 on Coinbase. The 10% flash crash wiped around $10,000 off the price of BTC as another leverage-induced liquidation event occurred. BREAKING: #Bitcoin briefly falls -$8,000 in […]<\/p>\n","protected":false},"author":0,"featured_media":26229,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-26228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/26228"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26228"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/26228\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/26229"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}