Bitcoin Smashes Through $24,000 Setting New All-Time High as $1 Billion in Short Positions Get Wiped Out

The cryptocurrency market witnessed an extraordinary day of trading on December 19, 2020, as Bitcoin surged past $24,000 for the first time in its history, reaching a new all-time high of $24,217. The landmark moment, which occurred around 11:45 AM EST, was accompanied by massive liquidations across derivatives markets, with over $1 billion in short positions wiped out in just 48 hours.

TL;DR

• Bitcoin hit a new all-time high of $24,217 on December 19, 2020
• Over $1 billion in short positions were liquidated in the preceding 48 hours
• BTC gained 21% over the week and 124% over 90 days
• Total crypto market trading volume hit $80 billion on futures and $10 billion on spot markets on Friday
• 58% of experts surveyed by Finder expect the bull run to continue into H2 2021

The rally that pushed Bitcoin to its new peak has been building momentum for weeks. At the time of publication, the leading cryptocurrency was trading at approximately $23,423, having pulled back slightly from the $24,000 handle. Despite the minor retreat, the overall trend remained overwhelmingly bullish, with Bitcoin posting gains of 21% over the past seven days, 25.1% over the last 30 days, and an impressive 124% over the 90-day period.

The Liquidation Wave

As Bitcoin climbed through resistance levels, traders who had bet against the rally found themselves on the wrong side of one of the most aggressive short squeezes in recent memory. According to data from Coinalyze, Friday alone saw $80 billion traded on futures markets and $10 billion on spot markets. A staggering $800 million in positions — both long and short — were liquidated in a single day. Over the previous two days combined, more than $1 billion in short positions were forcibly closed as the price kept climbing.

The scale of these liquidations underscores just how unprepared many traders were for the velocity of Bitcoin’s ascent. Bears who had been calling for a top at $20,000, then $21,000, then $22,000, were repeatedly stopped out as the world’s largest cryptocurrency refused to slow down.

Market Dominance and Altcoin Performance

Bitcoin’s market dominance stood at roughly 65% on December 19, confirming that the rally was primarily BTC-driven rather than a broad-based altseason. Nevertheless, several major altcoins posted significant gains of their own. Ethereum was trading around $646, up 9% for the week and 26% over 30 days, with a 90-day gain exceeding 90%. XRP held the third position at $0.57, gaining 10.9% over the week and a remarkable 146% over three months.

Litecoin was arguably the standout altcoin performer, surging 40% in just one week and 168% over 90 days, trading at approximately $113. Bitcoin Cash also made notable moves, trading at $350 with a 25% weekly gain and 62% over three months.

Institutional Momentum Continues

The rally has been fueled in large part by growing institutional adoption. Major companies have been adding Bitcoin to their balance sheets, and spot Bitcoin ETFs have seen substantial inflows. The narrative of Bitcoin as a hedge against fiat currency debasement has gained mainstream traction, particularly in the context of unprecedented monetary stimulus by central banks worldwide.

Gavin Smith, managing partner at Panxora Crypto Hedge Fund, captured the prevailing sentiment: “Bitcoin is now being used as a hedge against fiat money printing by early adopters in both retail and institutional sectors. This trend is expected to continue. We don’t believe this will be an uninterrupted move higher — we expect the market will exhibit high volatility to both the upside and downside but with a clear bias to higher levels.”

Expert Predictions Point to Extended Bull Run

Finder’s 2021 Bitcoin Predictions Report, which surveyed 47 industry experts, found that 58% of panelists expect the current bull run to last until at least the second half of 2021. The survey was conducted in early December, before Bitcoin had even touched $20,000, making the predictions all the more notable. However, a majority of respondents also cautioned that BTC would likely experience a sharp correction after reaching its peak valuation.

Kraken’s daily market report for December 19 noted $531.4 million in total spot trading volume — remarkably high for a weekend session — with Bitcoin accounting for $308 million of that total, followed by Ethereum at $81.3 million.

Why This Matters

Bitcoin’s breach of $24,000 represents more than just a round number milestone. It validates the thesis that institutional capital inflows and macroeconomic conditions — particularly concerns about inflation and currency debasement — are fundamentally reshaping the cryptocurrency market. The sheer volume of short liquidations suggests that many traditional traders still underestimate the strength of this rally. With experts broadly predicting further upside through 2021, the stage appears set for Bitcoin to potentially challenge even higher resistance levels in the weeks and months ahead.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always do your own research before making investment decisions.