Bitcoin loses $2,000 in 35 minutes, over $132 million long positions wiped out as the US market opens

Price Fluctuations Raise Market Concerns

Bitcoin experienced a significant drop on Friday, December 12, as the US market opened at 10:00 AM EST. Within approximately 35 minutes, the price of BTC fell from $92,473 to $90,335, then continued to decline further to $89,510 around 11:35 to 11:40 AM EST. The initial decline was $2,137, corresponding to a 2.31% loss in value, while from the opening price to the day's lowest point, Bitcoin lost 3.2% (nearly $3,000).

Currently, Bitcoin is trading at $95.44K, with a 24-hour volatility of -1.21%, a 24-hour trading volume of $1.02B, and a market capitalization of $1906.55B.

Large-Scale Liquidation Event

This price drop triggered a series of long positions being forcibly closed. According to reports, over $132 million in long positions were liquidated within 60 minutes of the US market opening. This created a shockwave effect, wiping out approximately $40 billion from the total market capitalization.

Ethereum was also affected, currently trading at $3.31K with a 24-hour volatility of -1.14%, a market cap of $399.47B, and a 24-hour volume of $475.57M.

Analysis of the 'EST Hour Manipulation' Pattern

A renowned analyst from Bull Theory identified a recurring pattern called “manipulation at 10 AM EST.” According to this observation, Bitcoin consistently experiences sharp declines immediately after the US market opens, followed by gradual recovery in the subsequent hours.

Bull Theory comments: “This pattern is too consistent to ignore. A sharp drop within an hour after the EST market opens, then a slow recovery. It’s classic high-frequency trading execution.” The analyst notes that similar phenomena occurred in Q2 and Q3 of last year.

Suspicion of High-Frequency Trading Activity

Jane Street, described as one of the largest high-frequency trading firms in the world, is identified as a key player behind these price movements. The firm possesses the processing speed and liquidity capacity to impact the market within minutes.

Notably, Jane Street holds a significant position in BlackRock’s Bitcoin Spot ETF (IBIT), currently owning around $2.5 billion in this asset, ranking fifth among the company's largest positions.

Impact on Traders

While proving market manipulation is very difficult, this recurring pattern raises major concerns within the trading community. Bullish traders (those betting on price increases) are particularly vulnerable because their long positions could become targets.

Market whales may use these liquidation events to force position closures, accumulate Bitcoin at lower prices, and seek better entry points than retail investors. This is a known strategy in financial markets, where large players leverage liquidity to gain an advantage.

Broader Market Context

Before this drop occurred, Bitcoin showed strong signs as the US Congress pushed the SEC to allow cryptocurrencies in 401(k) plans. The price surpassed the $92,000 mark, creating a positive sentiment in the EST market and other regions.

Although most cryptocurrencies aim for long-term bullish reversals, events like the “EST hour manipulation” pattern remind traders to be cautious when managing their positions, especially during periods of high liquidity.