The crypto market experienced a roller-coaster weekend, with Bitcoin (BTC) triggering a widespread pullback that saw $500 million in liquidations. Over the course of Sunday night, BTC tumbled from a high of $98,500 to a low of $95,500, shedding over 3.5% of its recent gains. This decline rippled across the market, impacting other major cryptocurrencies, including XRP and Dogecoin (DOGE), which took some of the heaviest losses.

Bitcoin Nears the $100K Threshold—Then Stumbles

Bitcoin's rapid drop came just as the world's largest cryptocurrency was on the verge of crossing the highly anticipated $100,000 mark. Market analysts believe this dip was largely due to profit-taking, as traders sought to cash in on recent gains. The technical and sentimental pullback was no surprise to seasoned observers, who had been bracing for some turbulence after Bitcoin’s sharp rally last week.

XRP and DOGE Suffer Steep Declines

Among the hardest-hit were XRP and Dogecoin, both of which fell by over 5% during the slide. Other major tokens, including Solana (SOL), Ethereum (ETH), Cardano (ADA), and Binance Coin (BNB), saw losses ranging from 2% to 5% before staging a modest recovery during early Monday trading in Asia. As a result, the total market capitalization dropped by 2.4%, and the CoinDesk 20 (CD20) index, a key indicator tracking top cryptocurrencies, saw a 1.48% dip over 24 hours.

$500 Million in Liquidations Amid Market Volatility

The market's volatility led to a significant number of liquidations, amounting to over $500 million. These losses impacted both bullish (long) and bearish (short) bets, with $366 million in long positions wiped out and $127 million in short positions also liquidated, according to data from Coinglass. Interestingly, mid-cap and small altcoins, often considered riskier investments, saw higher levels of liquidations than Bitcoin and Ethereum—highlighting the heightened risk appetite among traders.

Market Recovery and Optimism for the Future

Despite the turbulence, the market regained some stability by early Monday. Losses for major cryptocurrencies were trimmed to less than 2%, signaling that traders are not overly concerned about the short-term setback.

Jeff Mei, Chief Operating Officer at crypto exchange BTSE, remains optimistic. “Bitcoin has been leading the market, driven primarily by institutional investors buying into ETFs. We’re confident that $100K is within reach in the coming week,” Mei stated. He also anticipates a surge in institutional interest for Ethereum ETFs, and potentially Solana ETFs, once they receive regulatory approval.

Bullish Outlook Bolstered by Traditional Markets and Politics

Adding to the optimism is the performance of traditional stock markets, which continue to make steady gains. Additionally, the recent involvement of the Trump transition team, which has engaged with several crypto executives to discuss potential pro-crypto policies, has generated a wave of positive sentiment. Many in the industry are hopeful that this favorable backdrop will propel the current rally well into 2025.

While the weekend's pullback served as a reminder of the crypto market’s volatility, it also underscored Bitcoin’s dominant influence. As the sector matures and institutional interest grows, many are betting that the days of sub-$100K Bitcoin are numbered, setting the stage for an eventful close to 2024 and a promising year ahead.