Bitcoin experienced dramatic price swings this week, reaching new heights before a sudden sharp decline triggered massive selloffs, only to rebound strongly afterwards.
The leading cryptocurrency hit an unprecedented $103,000 on Thursday before experiencing a dramatic five-minute plunge. Between 10:23 AM and 10:28 AM UTC, Bitcoin's value dropped from $98,338 to $92,957, causing over $303.5 million in long positions to be liquidated within an hour.
The sudden price movement caught many traders off guard. As trader Smiley Capital noted on X, "It took Bitcoin 3 minutes to drop ~10% which equals to ~200B drop 180 seconds. 200 Billion dollars lower. 5th December truly goes down in history."
However, the cryptocurrency demonstrated remarkable resilience, climbing back above $101,000 by Friday morning.
Market analysts attribute the recent price surge to growing optimism surrounding potential policy changes under a future Trump administration. The former president has pledged to transform the United States into a "Bitcoin superpower" and establish a strategic crypto reserve.
Maria Carola, CEO of StealthEX, points to anticipated regulatory changes as a key factor driving market sentiment. "Under the Trump administration, crypto regulation is anticipated to be overhauled, including a more favourable stance from the SEC, which tightened its oversight during Joe Biden's term," she explained.
Looking ahead, some analysts project even higher valuations. Bernstein analyst Gautam Chhugani forecasts Bitcoin could reach $200,000 by late 2025, suggesting the current $100,000 milestone may be just another stepping stone in Bitcoin's price journey.
The recent volatility serves as a reminder of cryptocurrency markets' dynamic nature, where substantial price swings can occur within minutes, affecting billions in trading positions.