After Bitcoin broke through the USD 100,000 mark, it took less than 24 hours for volatility to show its merciless side.

Bitcoin Price plummets within a few minutes

After Bitcoin broke through the USD 100,000 mark on the night of December 12, many saw the way paved for an unstoppable rise in the price of the first cryptocurrency. However, more prudent voices also pointed to the possibility of an imminent correction. However, very few probably expected the collapse that followed less than 24 hours later.

After the price had already fallen just below the 100K mark again, it fell from around USD 98,400 to a low of around USD 91,800 within just five minutes at around 23:30 CET. However, a recovery began immediately afterwards and less than half an hour later the Bitcoin price was back above USD 97,000.

Cause of the Drop still unknown

It is not yet clear what triggered this crash. It remains to be seen whether one of the whales may have decided to take profits with a (larger) portion of their Bitcoins after the drop below USD 100,000. However, it is unlikely or almost impossible that a single market participant could cause such a crash. However, the fact that the sharp dip was immediately followed by a recovery, albeit not immediately to the previous price level, shows that the bulls may initially be cautious, but that they are sufficiently optimistic to buy Bitcoin when the opportunity presents itself.

It remains to be seen whether the price can regain the 100K level during the Asian session. However, it could become interesting when the figures on non-farm payrolls in the US are published on Friday. If these disappoint, the expectation of a further interest rate cut by the Fed in December could give Bitcoin's price a boost again.

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