Bitcoin's long-awaited surge beyond the $100,000 mark has set the market abuzz, but it also triggered significant liquidations.
Bitcoin’s BTC $97 628 24h volatility: 5.5% Market cap: $1.93 T Vol. 24h: $169.72 B long-awaited surge beyond the $100,000 mark has set the market abuzz, but it also triggered significant liquidations. On December 4, over $676 million worth of perpetual futures contracts were liquidated on centralized exchanges, according to data from CoinGlass.
A total of 209,359 traders were affected, with long positions bearing the brunt of the losses. Investors who bet on Bitcoin (BTC) climbing higher accounted for $373 million in liquidations, while short positions added $305 million to the tally.
Bitcoin’s rally began in November, fueled by renewed optimism following Donald Trump‘s re-election as US president. The news gave BTC fresh momentum, pushing it to an all-time high of $103,361. However, this sharp ascent caught many derivatives traders off guard.
CoinGlass data shows that Bitcoin alone contributed $182.5 million to the total liquidations, while Ethereum ETH $3 899 24h volatility: 1.0% Market cap: $470.50 B Vol. 24h: $58.04 B accounted for $91.6 million. Similarly, Ripple’s XRP and Solana SOL $241.9 24h volatility: 2.7% Market cap: $115.11 B Vol. 24h: $12.88 B also saw significant losses, recording $56 million and $21 million in liquidations, respectively.
Other cryptocurrencies, including Cardano ADA $1.19 24h volatility: 0.1% Market cap: $42.55 B Vol. 24h: $2.78 B and Binance Coin BNB $728.0 24h volatility: 1.2% Market cap: $106.32 B Vol. 24h: $2.50 B , experienced combined liquidations of more than $112 million. The single largest liquidation occurred on Bybit, where a trader lost $8.91 million in Bitcoin positions.
Binance led the liquidation activity among exchanges, wiping out more than $260 million in leveraged positions. OKX and Bybit followed closely, recording $163 million and $161 million in liquidations, respectively.
The liquidation surge also continued heightened volatility for derivatives traders. Just a day earlier, $588 million in futures contracts were liquidated, bringing the two-day total to over $1.26 billion.
Tuesday’s liquidation was led by XRP XRP $2.31 24h volatility: 1.7% Market cap: $132.13 B Vol. 24h: $15.19 B , which briefly reclaimed its spot as the third-largest cryptocurrency by market capitalization, overtaking Tether USDT $1.00 24h volatility: 0.1% Market cap: $136.70 B Vol. 24h: $260.26 B for the first time in years.
The digital asset skyrocketed 415%, peaking at $2.5 for the first time following its legal battle with the United States Securities and Exchange Commission (SEC) in 2020. However, this upward trajectory was short-lived as the token’s price later declined, leading to $69 million in liquidations – $36 million in longs and $33 million in shorts.
Dogecoin, typically known for its relative stability compared to other cryptocurrencies, experienced approximately $22.5 million in liquidations. The market downturn was partly influenced by reports of South Korean President Yoon Suk Yeol imposing martial law amid a political crisis. This unrest significantly impacted the crypto market, with South Korean exchanges like Upbit witnessing sharper price declines than their global counterparts.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
