Bitget App
Trade smarter
Open
HomepageSign up
Bitget>
News>
Markets>
Bitcoin News Today: Bitcoin Approaches $96.9K Threshold: A $9.6B Liquidation Risk Looms

Bitcoin News Today: Bitcoin Approaches $96.9K Threshold: A $9.6B Liquidation Risk Looms

Bitget-RWA2025/12/02 03:46
By: Bitget-RWA
- Bitcoin's $96,900 threshold could trigger $9.6B in short liquidations, per Hyperliquid/Coinglass data, as leveraged bearish bets cluster near key resistance levels. - A breakout above $95,000 risks forcing $900M+ in short closures, while ETF inflows and institutional demand suggest renewed bullish momentum amid recent volatility. - Market structure remains fragile, with concentrated puts at $90K-$100K strikes and historical precedents showing liquidation cascades can amplify price swings in either direct

Bitcoin Price Surge Could Spark Massive Short Liquidations

On-chain analytics from Hyperliquid and Coinglass suggest that if Bitcoin climbs to $96,900, it could set off a wave of forced liquidations totaling more than $9.6 billion in short positions. This price point is close to significant resistance zones where many traders have placed leveraged bearish bets, creating a feedback loop that could intensify price swings in either direction. The situation highlights the delicate balance in the cryptocurrency market, where clusters of short positions present both risks and opportunities for those navigating the current volatility.

Key Liquidation Zones and Market Impact

The most notable liquidation clusters are found between $94,354 and $114,295. For example, if Bitcoin reaches $95,123, approximately 1,140 BTC—valued at $99 million—would be liquidated. A further move to $98,356 could trigger the closure of 3,920 BTC in shorts, worth $340.5 million. Altogether, a breakout above $95,000 could result in over $900 million in short positions being forcibly closed, with even larger triggers at higher price points.

Additionally, derivatives traders have heavily positioned put options at the $90,000 and $100,000 levels, signaling a cautious approach to the possibility of further price increases.

Bitcoin Market Chart

Recent Market Turbulence and Recovery

Recent developments have heightened the urgency of this scenario. On December 1, Bitcoin briefly fell below $86,000 during a global sell-off that wiped out $140 billion from the total crypto market capitalization. This sharp decline, fueled by risk aversion and rapid liquidations, led to over $300 million in long positions being closed in a matter of hours. However, the market quickly rebounded, driven by renewed institutional interest and strong ETF inflows, which reignited bullish sentiment.

Analysts point out that Bitcoin's ability to stabilize around $86,000 and reclaim the $90,000 level demonstrates the market's resilience amid recent volatility.

Structural Implications for Crypto Markets

These liquidation events have a significant impact on market structure. Forced closures on perpetuals platforms like Hyperliquid often spill over into spot markets, amplifying price fluctuations. For instance, the 17.7% drop in Bitcoin and 25% decline in Ethereum in October were both preceded by large-scale liquidations that triggered a domino effect.

If Bitcoin manages to break above $96,900, the resulting short squeeze could propel prices toward $100,000 or beyond. On the other hand, failing to maintain these levels could renew downward pressure and spark further declines.

Trader Sentiment and Resistance Levels

Opinions remain split on whether Bitcoin can sustain a breakout. Sean Dawson from Derive notes a moderate increase in call options at the $90,000 mark, but warns of much larger concentrations at the $100,000 and $110,000 strikes. This pattern suggests that while there is short-term optimism, overcoming higher resistance levels may require additional catalysts, such as changes in the macroeconomic environment or new regulatory developments.

Meanwhile, Nicolai Søndergaard of Nansen observes that Ethereum’s crucial support between $2,400 and $2,500 coincides with significant put activity, indicating that similar dynamics are at play for major altcoins.

Anticipating Further Volatility

The broader crypto ecosystem is preparing for increased turbulence. Bitcoin’s recent rally has already resulted in a dramatic 36,380% imbalance in liquidations favoring long positions, with $8 million in shorts wiped out in just one hour. These extremes underscore the vulnerability of leveraged trades, especially as economic uncertainty lingers. While institutional investors are purchasing Bitcoin ETFs at unprecedented levels, the relationship between these inflows and potential liquidation events remains a key factor to watch.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

South Korea's Stablecoin Deadline Triggers Regulatory Dispute Between Banks and Fintech Firms

- South Korea's ruling party demands a stablecoin regulatory draft by Dec 10, threatening independent legislation if unmet. - Proposed framework requires banks to hold 51% in issuing entities, balancing fintech innovation with monetary stability concerns. - Bank of Korea (BOK) opposes non-bank issuers, while Financial Services Commission (FSC) advocates lower fintech barriers. - Global 2025 stablecoin regulations push South Korea to accelerate, with AML rules expanding to all crypto transactions. - Deadlin

Bitget-RWA2025/12/02 07:08
Zcash News Today: Zcash’s Sharp Decline Challenges Grayscale ETF Prospects as Distribution Concerns Rise

- Zcash (ZEC) fell over 20% in 24 hours due to technical breakdowns, Hyperliquid's HYPE token unlock, and Chicago data-center outages. - Key Fibonacci levels breached below $361, with $39.34M net outflows and open interest dropping to $600M as distribution pressures mount. - Hyperliquid's $60.4M token unlock triggered 4.6% HYPE price drop, while Arthur Hayes highlighted skepticism about token utility and governance. - Grayscale's Zcash ETF filing (ZCSH) aims to stabilize ZEC by offering institutional acces

Bitget-RWA2025/12/02 07:08
South Korea Faces Inflation Challenges: Central Bank Maintains Rates Despite Ongoing Pressures

- South Korea's inflation held at 2.4% in November as food , fuel, and housing costs persist, exceeding economist forecasts. - The Bank of Korea maintained 2.5% interest rates for the fourth meeting, balancing weak won, inflation risks, and fragile economic recovery. - Weather disruptions, fuel-tax removal, and Seoul's 43-week housing price rise intensified cost pressures on households and businesses. - A $9.73B trade surplus from semiconductor exports and U.S. tariff cuts complicate inflation management a

Bitget-RWA2025/12/02 07:08
Bitcoin News Update: Tracing the Journey from Trials to Mainstream Use—Tokenization’s Rise to a $30 Trillion Market

- BlackRock's Fink and Goldstein join industry leaders highlighting asset tokenization's potential to reshape global financial infrastructure, with RWA tokenization surging to $24B in June 2025. - Market growth projections reach $30T by 2034 as institutions adopt blockchain to streamline legacy systems, evidenced by BlackRock's Avalanche-based EU platform and Vanguard's crypto ETF integration. - Regulatory progress includes HashKey's IPO plans and Ripple's Singapore expansion, though challenges persist wit

Bitget-RWA2025/12/02 07:08

Trending news

More
1
South Korea's Stablecoin Deadline Triggers Regulatory Dispute Between Banks and Fintech Firms
2
Zcash News Today: Zcash’s Sharp Decline Challenges Grayscale ETF Prospects as Distribution Concerns Rise

Crypto prices

More
Bitcoin
Bitcoin
BTC
$86,970.55
+1.02%
Ethereum
Ethereum
ETH
$2,807.18
-0.65%
Tether USDt
Tether USDt
USDT
$1.0000
-0.01%
XRP
XRP
XRP
$2.02
-1.03%
BNB
BNB
BNB
$829.61
+0.31%
USDC
USDC
USDC
$0.9998
-0.00%
Solana
Solana
SOL
$127.56
+0.84%
TRON
TRON
TRX
$0.2771
+0.19%
Dogecoin
Dogecoin
DOGE
$0.1357
-0.80%
Cardano
Cardano
ADA
$0.3894
+1.79%
How to buy BTC
Bitget lists BTC – Buy or sell BTC quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now
Trade smarter