Here’s why Bitcoin recovered after plunge to $100k and $610M market wipe
Bitcoin briefly plunged near $100k, causing $610M in liquidations, before recovering due to macro factors and derivatives unwinding.Summary
Bitcoin dropped to $100,800 on November 12, leading to approximately $610 million in leveraged position liquidations, before recovering to $103,000. The sell-off was driven by a strengthening US dollar ahead of the Consumer Price Index (CPI) release, as fading expectations for a December Federal Reserve rate cut removed a key tailwind for risk assets. Derivatives markets amplified the drop through a cascade of liquidations, as thin liquidity and clustered stop-losses exacerbated the price movement following leverage rebuilds. While Bitcoin recovered, altcoins underperformed, reflecting uneven market flows. Spot Bitcoin ETFs saw significant inflows on November 11, but Ethereum funds experienced net outflows, contributing to cautious market sentiment as traders await CPI data to clarify the Federal Reserve's future policy path.
(Source：CryptoSlate)