Crypto markets saw over $1.5 billion in liquidations as Bitcoin briefly dropped below $95,000 before recovering to $97,400. The event marked one of the largest liquidation events in 2024.
Massive Liquidations Across Markets
Nearly 514,400 traders were liquidated, with $1.38 billion in long positions wiped out alongside $136.7 million in short positions. Bitcoin and Ethereum accounted for $163.4 million and $204.7 million of the liquidations, respectively.Bitcoin's Volatility Drives Market Losses
Bitcoin's price dropped to $94,900 before rebounding. The market's reaction follows the cryptocurrency’s historic surge past $100,000 last week, which had led to increased leveraged positions.Historical Context of Liquidations
This liquidation event rivals the $1.1 billion seen on December 5 and the largest since December 2021. Analysts attribute this to a “leverage flush,” as traders adjusted to Bitcoin’s volatile price action. The market’s sharp movements highlight the risks of high leverage in crypto trading, especially during periods of heightened volatility.
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