Bitcoin Soars to $90K, Sparking $900 Million in Liquidations as Crypto Rally Gains Momentum

Bitcoin surged to an eye-popping $90,100 on Coinbase, marking a new milestone in its rally. The bullish momentum, however, was short-lived as prices quickly retraced by around 5%, dropping back to the low $85,000 range. Despite the pullback, Bitcoin quickly bounced back, reaching $90,100 once again before experiencing another slight decline.

This wild price movement triggered a wave of liquidations, with more than $900 million worth of leveraged positions across the crypto market being wiped out in the past 24 hours, according to data from CoinGlass. The massive sell-off underscores the high volatility in the crypto markets, where leveraged bets can lead to swift and significant losses.

Ripple and Altcoins Outperform Bitcoin

While Bitcoin dominated the headlines, several altcoins also saw impressive gains. Ripple's XRP, Stellar Lumens (XLM), and Hedera (HBAR) surged by 15%-18%, outperforming the broader CoinDesk 20 Index, which remained largely flat. In contrast, Ethereum (ETH) and Solana (SOL) slipped 2%-3%, highlighting the choppy price action in the altcoin market.

$90K Resistance: A Key Turning Point for Bitcoin?

The $90,000 level for Bitcoin is proving to be a significant resistance point. On Binance, the popular BTC-USDT pair saw increasing sell orders around the $90K mark, suggesting that traders expect a pause or retracement at this price level. Additionally, options market positioning indicates that Bitcoin's rise could face resistance in the $90,000-$100,000 range.

After briefly touching $90,000, Bitcoin's price dropped to $88,500, still up about 1% over the past 24 hours. Despite this pullback, the digital asset continues to outperform many other cryptocurrencies, with the CoinDesk 20 Index showing little movement during the same period.

A Wild Ride: $900 Million in Liquidations

The recent price swings were particularly brutal for those with leveraged positions, with over $900 million in liquidations taking place across the entire crypto market. This marks the largest liquidation event since the August 5 market crash, which saw Bitcoin briefly dip below $50,000 after a series of unwinding trades linked to Japanese yen carry trades.

The strong rally in Bitcoin and other cryptocurrencies is attributed to several factors, including the outcome of the recent U.S. presidential election. The anticipation of a pro-crypto regulatory environment under President Trump has spurred both institutional and retail investors to pile into the market. Combined with global economic factors such as easing inflation, solid economic growth, and a generally risk-friendly environment, Bitcoin's price is poised to keep climbing.

Institutional Investors Drive the Crypto Bull Market

"Institutions are more influenced by government signals than retail investors," said Nathan McCauley, CEO of Anchorage Digital, a digital asset custody provider. "The expectation of a more crypto-friendly government next year is acting as a major institutional catalyst, one we've never seen before."

As governments around the world take a more open stance toward cryptocurrencies, institutional investors are jumping on the bandwagon, fueling the continued rise of digital assets like Bitcoin. With more regulations on the horizon and a growing appetite for risk assets, the crypto bull market shows no signs of slowing down.