The price of Bitcoin has fluctuated considerably in recent days. The price rose as high as $51,700 yesterday, but fell to a low of $48,600 today.
Price decline has not affected bullish sentiments
The driving force behind the volatility seems to come from liquidations in the derivatives market. According to a Bitcoin analyst, the price of Bitcoin has fallen in recent hours as long positions are liquidated.
Bitcoin liquidation data from Coinglass supports this idea. The data shows that more than 75% of the liquidations in a 24-hour timeframe occurred in the past 12 hours. Of the $94.10 million in Bitcoin liquidations on the day, $71.04 million was liquidated in the past 12 hours. 89.5% of these liquidations were long liquidations.
As a result of the liquidations, Bitcoin’s price has fallen about 3.1% to $49,414 in the past 24 hours.
Regardless of the price drop, sentiment remains fairly bullish, according to data from Santiment. The fact that Bitcoin’s circulation remains stable with prices below $50,000 is encouraging. This is a good thing for the market as it indicates that the price is likely to rise again.
Bitcoin expectations in the coming year
Despite Bitcoin’s recent price volatility, many crypto experts are still very bullish. Several analysts have revealed that they expect Bitcoin’s price to still exceed $100,000 in the fairly short term. The more conservative analysts, including Ian Balika, the founder of Token Metrics, and Jurrien Timmer, director of Fidelity Investments, think it could take until 2023 for Bitcoin to hit $100,000.
By contrast, more bullish analysts such as Kate Waltman have noted that Bitcoin’s price could hit $100,000 in the first quarter of 2022.