Crypto Market Wipes out $1B as Bitcoin Plummets to $90K

Key Takeaways

• Bitcoin briefly hit $100,000 before returning to $90,000 in a flash crash.
• Over 150,000 traders were liquidated, with Bitcoin alone accounting for $565 million in losses.
• Despite the volatility, institutional investors and crypto whales continued shopping.

Optimism soared for weeks as Bitcoin (BTC) broke successive all-time highs, culminating in a much-hyped $100,000 milestone with millions of market watchers glued to live streams.

The crypto market’s euphoria suddenly stopped on Dec. 5 after Bitcoin (BTC) briefly touched the long-anticipated $100,000 mark before plunging back to $90,000 in a dramatic flash crash.

The rapid downturn wiped out nearly $1 billion in long and short positions, leaving traders reeling.

Massive Liquidations Hit Traders Hard

According to data from CoinGlass , over $816 million in short positions and $200 million in long positions were liquidated. In total, more than 150,000 traders saw their bets obliterated.

Traders who had banked on Bitcoin’s continued rise bore the brunt of the crash.

Bitcoin alone accounted for $565 million in liquidations—$417 million from long positions and $145 million from shorts.

Ethereum (ETH) , Solana (SOL) , and Ripple (XRP) also faced heavy losses, with liquidations of $108 million, $30.15 million, and $54.11 million, respectively.

Bull Market Correction, Not Panic

Analysts quickly frame the flash crash as a standard correction rather than a harbinger of doom.

With the market stuck in “extreme greed” for weeks and Bitcoin’s open interest (OI) reaching an all-time high of $65 billion, the conditions were ripe for a pullback.

By the time the dust settled, Bitcoin’s OI had dropped to $58 billion—a natural reset, according to experts.

While unsettling, such events are viewed as part of the ebb and flow of a bull market rather than a reason for alarm.

Whales and Corporations Buy the Dip

While traders faced turmoil, crypto whales and corporations seized the opportunity to accumulate more Bitcoin.

Mega-corporations and institutional investors showed little concern for the volatility, continuing to add BTC to their holdings.

U.S. Bitcoin mining giant MARA scooped up 1,423 BTC after the crash.

BlackRock, the world’s largest asset manager, acquired 7,750 BTC, while health-tech firm Semler Scientific purchased 303 BTC.

The buying spree demonstrates that long-term confidence in Bitcoin remains strong, even amid short-term price swings.

Bitcoin had stabilized at $98,000 at press time , retracing much of the previous price drop.