Bitcoin Surges to $90,100 Amidst $900 Million Liquidation of Leveraged Trades
Bitcoin has made headlines once again, briefly reaching an impressive $90,100 on Coinbase before facing a wave of sell pressure. This dramatic price movement resulted in the liquidation of over $900 million in leveraged derivatives trading positions across the digital asset market, according to data from CoinGlass.
The ongoing crypto bull market shows no signs of slowing down, with Bitcoin (BTC) hitting a new milestone at the $90,000 mark on the popular exchange Coinbase. However, the largest cryptocurrency experienced a pullback of approximately 5%, dipping to the low-$85,000 range earlier on Tuesday, which shook out some latecomers who had taken leveraged positions. The dip was short-lived, as Bitcoin quickly rebounded, achieving a new all-time high of $90,100 on Coinbase's BTC-USD trading pair during the later hours of the U.S. trading session. The CoinDesk Bitcoin Index (XBX), which aggregates pricing data from various exchanges, recorded a peak of $89,971 as Coinbase prices surpassed the $90,000 threshold.
Despite this surge, the $90,000 level may act as a significant resistance point for Bitcoin in the near term. Data from Binance, one of the leading crypto exchanges, revealed a buildup of sell orders at the $90,000 mark for the BTC-USDT trading pair. Additionally, options market positioning indicates that Bitcoin's ascent could stall within the $90,000 to $100,000 range.
Shortly after reaching the $90,000 milestone, Bitcoin's price reversed course, dropping to $88,500. Nevertheless, it remained up 0.9% over the past 24 hours, outperforming the broader CoinDesk 20 Index, which remained relatively flat during the same timeframe.
In related market movements, Ethereum's ether (ETH) and Solana (SOL) saw declines of 2%-3%, while Ripple's XRP (XRP), Stellar Lumens (XLM), and Hedera (HBAR) experienced notable gains, advancing between 15% and 18%.
The recent volatility in crypto prices has led to the liquidation of approximately $940 million in leveraged derivatives trading positions across all digital assets in the last 24 hours, marking the largest liquidation event since the market crash on August 5, when unwinding Japanese yen carry trades briefly pushed Bitcoin below $50,000.
The upward momentum in crypto prices has been fueled by the recent election victory of Donald Trump, as investors are increasingly optimistic about the prospect of more crypto-friendly regulations. Factors such as cooling inflation, robust economic growth, and global monetary easing are also contributing to the favorable environment for risk assets.
Nathan McCauley, CEO and co-founder of digital asset custody provider Anchorage Digital, noted in an email that institutional investors are particularly responsive to government signals. "The anticipation of a pro-crypto government next year is proving to be an institutional catalyst—the likes of which we have never seen," he stated, highlighting the growing interest from institutional players in the crypto market.