According to data from Coinglass, cryptocurrency liquidations reached $1.4 billion in the past 24 hours.
Leveraged traders with long positions were spooked by the plummeting price of Bitcoin and the sharp drop in altcoins.
Bitcoin price fell to a low of $92,000 on Friday. This means the world's largest cryptocurrency is currently down 13.4% from its all-time high reached just three days ago.
The situation was even worse for digital assets with small market capitalizations.
Ethereum at one point fell 16% in 24 hours, while XRP fell 18% and Dogecoin 26% in the same time frame.
One trader in the Wealth Group's crypto Discord community said he believes the recent liquidations combined have resulted in “probably the largest liquidation event in crypto history over the past few weeks.”
Total liquidations on Coinglass in the past three weeks amount to approximately $10 billion (via Cex)
I remember Cat saying on December 9th or 10th that the actual liquidation total was around $10 billion, which is one-tenth of the actual number.
If that's correct, we've probably seen the biggest liquid… pic.twitter.com/fZkR7YiG16
— Pat (@PattaTrades) December 20, 2024
On Wall Street, $680 million was out of Spot Bitcoin ETFs on Thursday, according to data from SoSoValue. This is a record number since these products were launched in January.
The crypto market rebound began after Federal Reserve Chairman Jerome Powell suggested that the U.S. central bank may cut interest rates much less frequently in 2025 than originally thought. Ta.
Stock markets were also hit hard, with New York's S&P 500 index, the tech-heavy Nasdaq 100 index, and London's FTSE stock prices falling.
A double-digit decline in such a short period of time would be an unpleasant experience for institutional and individual investors who are new to cryptocurrencies. However, some traders argue that this is a temporary move ahead of next year's new all-time high.
Bitcoiners still have plenty of reasons to be bullish, as pro-crypto President Donald Trump is set to enter the White House in January and ETFs continue to buy Bitcoin much faster than they can mine it. It is claimed that there is.
Edited by Stacey Elliott.
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