Crash

Bitcoin

Flash

Adam Back

BlackRock

Bitcoin prices dumped to $92,980 during late trading on Dec. 5. The move follows an <a href="https://cryptopotato.com/experts-and-analysts-react-to-bitcoins-surge-past-100k-whats-next/" data-wpel-link="internal" rel="noopener noreferrer nofollow">all-time high</a> 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.
<blockquote class="twitter-tweet">
 BREAKING: <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Bitcoin</a> briefly falls -$8,000 in 90 minutes to a daily low of $92,000.
 Bitcoin has since rebounded +$5,000 off of its low but continues to trade in volatility. <a href="https://t.co/7hqeSQl1LW" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/7hqeSQl1LW</a>
 — The Kobeissi Letter (@KobeissiLetter) <a href="https://twitter.com/KobeissiLetter/status/1864804341212651933?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">December 5, 2024</a>
</blockquote>
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<h2 id="btc-flash-crash">BTC Flash Crash</h2>
The <a href="https://cryptopotato.com/bitcoin-plunges-to-98k-amid-heightened-volatility/" data-wpel-link="internal" rel="noopener noreferrer nofollow">return to five figures</a> came as mainstream media outlets around the world reported Bitcoin’s milestone high above $100,000 for the first time.
“An interesting post-mortem about this move is that the ETFs didn’t follow it at all,” observed analyst ‘lowstrife’ who added:
<blockquote>
 “This was entirely a spot bitcoin move driven by, you guessed it, leverage.”
 “If 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,” he said.
</blockquote>
Bitcoin pioneer Adam Back observed that there was “entirely too little market making” before adding, “Even a few minutes of a 4% gap between IBIT and spot BTC, come on!”
<blockquote class="twitter-tweet">
 An interesting post-mortem about this move is that the ETF’s didn’t follow it at all. This was entirely a spot bitcoin move driven by, you guessed it, leverage. <a href="https://t.co/nSIFpXMsbW" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/nSIFpXMsbW</a>
 — lowstrife (@lowstrife) <a href="https://twitter.com/lowstrife/status/1864810438761849105?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">December 5, 2024</a>
</blockquote>
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According to Coinglass, 163,587 traders were <a href="https://www.coinglass.com/LiquidationData" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">liquidated</a> over the past 24 hours, and the total wrecked value came in at over $900 million, 80% of them long positions.
<blockquote>
 “Near the end of the week, a sharp downward shot cleared a wave of leverage, other coins didn’t follow suit, and the long side of the overall crypto market is very strong,” <a href="https://x.com/GreeksLive/status/1864857177493827885" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">commented</a> crypto derivatives provider Greeks Live.
</blockquote>
The crash and correction have returned the asset to its range-bound channel, where it has been trading since mid-November.
At the time of writing, during early trading in Asia on Friday morning, BTC was changing hands for around $97,600.
<h2 id="bitcoin-etfs-still-bullish">Bitcoin ETFs Still Bullish</h2>
As observed above, spot Bitcoin ETFs did not blink while <a href="https://cryptopotato.com/total-crypto-market-cap-tops-3-8-trillion-in-record-high/" data-wpel-link="internal" rel="noopener noreferrer nofollow">spot markets</a> were flushed of their leverage.
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’s GBTC outflowed $149 million, according to Coinglass.
The post <a href="https://cryptopotato.com/bitcoin-recovers-from-leverage-induced-flash-crash-below-93k/" rel="noopener noreferrer nofollow">Bitcoin Recovers From Leverage-Induced Flash Crash Below $93K</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Bitcoin Recovers From Leverage-Induced Flash Crash Below $93K

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