Bitcoin’s price fell from $98,500 to $95,500 on Sunday, causing a market-wide decline and significant futures liquidations. The drop, amounting to over 3.5% from its peak, was driven by profit-taking as BTC approached the $100,000 mark. While the decline temporarily unsettled the market, sentiment remains positive for Bitcoin’s continued rally.

Key developments

• Market Impact: Bitcoin’s dip to $95,500 led to losses across major cryptocurrencies. XRP and Dogecoin (DOGE) recorded declines exceeding 5%, while Solana (SOL), Ether (ETH), Cardano (ADA), and Binance Coin (BNB) fell between 2%-5% before recovering. The total crypto market capitalization dropped by 2.4%.

• Futures Liquidations: Over $500 million in futures positions were liquidated during the volatility, including $366 million in long positions and $127 million in shorts. Notably, small-cap altcoins and midcap futures saw over $100 million in liquidations, highlighting increased speculative risk-taking among traders.

• Recovery in Asian Markets: By Monday’s early Asian trading hours, markets showed resilience, reducing 24-hour losses for major tokens to below 2%.

Despite the weekend’s pullback, analysts are confident in Bitcoin reaching $100,000, with expectations bolstered by institutional demand for crypto exchange-traded funds (ETFs). Ethereum and Solana ETFs are also predicted to attract institutional interest once approved.

DISCLAIMER: This is a news article and does not constitute financial advice.