The euphoria surrounding Bitcoin's historic surge past the $100,000 milestone was short-lived. In a dramatic turn of events, Bitcoin's price tumbled below $96,000, triggering massive liquidations and sending shockwaves through the crypto market.

A Market Correction

The global cryptocurrency market, which had been on an upward trajectory, saw a modest 2% dip in the last 24 hours, shrinking to a valuation of $3.6 trillion. Trading volume also took a hit, falling 12% to $308 billion. Despite the downturn, some major altcoins, such as Ethereum (ETH) and Solana (SOL), showed resilience with marginal gains, while others followed Bitcoin into the red.

Bitcoin Bulls Bleed

According to CoinGlass, over 156,000 traders were liquidated in the past 24 hours, with the total liquidation value exceeding $875 million. A staggering 80% of this amount—$702 million—came from long positions, as optimistic traders betting on Bitcoin’s continued climb were caught off guard. Bitcoin alone accounted for $415 million of the losses, with the largest single liquidation order, worth approximately $18.94 million in BTC/USDT, occurring on the OKX exchange.

Bitcoin briefly dropped to $94,000 before stabilizing near $98,299 at press time, marking a 4% decline over the last 24 hours. The sell-off was exacerbated by a move from Mt. Gox, which transferred 3,493 BTC (worth approximately $340 million) to new wallets. This triggered fears of a potential flood of selling pressure.

Bright Spots in the ETF Market

While Bitcoin struggled, the crypto exchange-traded fund (ETF) market shined brightly. Bitcoin spot ETFs saw a net inflow of $767 million on December 5, marking the sixth consecutive day of positive inflows. BlackRock's IBIT fund led the charge, recording a massive $2.5 billion in inflows over the past five days, bringing its cumulative total to $34.11 billion.

Ethereum spot ETFs also enjoyed significant inflows, with $428 million recorded on the same day—the largest single-day inflow since their launch. ETH ETFs have now seen nine consecutive days of net positive inflows, pushing their cumulative inflows past $1 billion after just 96 trading days. BlackRock’s ETHA fund and Fidelity’s FETH fund were key contributors, adding $293 million and $114 million per day, respectively.

Ethereum’s Surge

Ethereum has been a standout performer amid the turbulence, with its price up by 50% over the past month. At press time, ETH was trading at $3,887, buoyed by strong investor sentiment and ETF inflows.

What’s Next for Crypto?

While Bitcoin’s plunge below $96,000 has rattled investors, the sustained inflows into crypto ETFs signal growing institutional confidence in the market. However, with volatility still a hallmark of the industry, traders and investors should tread carefully as the market recalibrates.

Will Bitcoin reclaim its $100,000 milestone soon, or is the market gearing up for more turbulence? Only time will tell, but one thing is certain: the crypto rollercoaster is far from over.