Bitcoin briefly rebounds to $99,000 on Christmas Day

Bitcoin soared above $99,000 on Christmas Day, fueled by renewed optimism that energized the market.

The leading digital asset has risen more than 5% in the past 24 hours, recovering from a weekly low of $92,973, according to data from CryptoSlate. At the time of this writing, Bitcoin was trading at $98,000, indicating that after several days of price decline, the rebound was short-lived.

Altcoins also joined in the recovery, with Ethereum, XRP, and Solana each posting gains of over 4%.

Notably, this momentum pushed global cryptocurrency market capitalization up 3.5% to $3.44 trillion. At the same time, the cryptocurrency fear and greed index rose to 73, indicating a sentiment of “greed”.

This bullish trend is in line with predictions from blockchain analytics firm Santiment. The platform emphasized that market rallies often follow panic retail selling, allowing large investors, or “whales,” to accumulate assets at a discount.

There it was stated:

“Historically, when retail traders start selling based on panic or emotion, whales and sharks have the opportunity to scoop up more coins with little resistance and create a bounce.”

$300 million in liquidation

The recent rally has been accompanied by ups and downs. According to CoinGlass data, more than $290 million was liquidated in the past 24 hours, affecting 105,883 traders.

Most of these losses were accounted for by short positions, with $162 million wiped out by the rise in Bitcoin prices. Meanwhile, traders with long positions betting on further upward momentum faced liquidations of $128 million.

Bitcoin traders experienced the highest liquidation losses, with $78 million lost, followed by Ethereum traders, who suffered $51 million in liquidation losses.

Meanwhile, the largest single liquidation took place on Okx, with $6.9 million in ETH-USDT trades, highlighting the increased volatility in the market.

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