Recently, the cryptocurrency Bitcoin 
$94,289 experienced a sudden drop, falling below $98,000 within minutes. This volatility could lead to increased losses for altcoin traders if the fluctuations continue. The primary question arises: what triggered this abrupt decline in BTC prices?
Factors Behind the Bitcoin Decline
BTC price unexpectedly dropped to $97,625 after surpassing the $100,000 mark. This decline closely resembles maneuvers seen in futures markets aimed at liquidating positions following a recent peak within the last 24 hours.
In the past hour, long positions worth $48 million were liquidated, contributing to a total of over $550 million in liquidations within the last 24 hours. Upcoming inflation data due on Wednesday could further heighten market volatility. QCP Capital highlighted in their assessment that upward movements may be limited as the holiday season approaches.
MicroStrategy’s Actions Impact Market
The announcement of MicroStrategy’s billion-dollar BTC purchase between December 2-8 could also be a contributing factor to the price drop. Historically, significant purchases announced by Saylor’s company tend to result in similar downturns in the market.
