The crypto liquidation has topped $420 million as Bitcoin recorded a cooloff from its extended gains above the $108,000 mark.
The price of Bitcoin BTC $105 267 24h volatility: 1.2% Market cap: $2.08 T Vol. 24h: $105.77 B has seen a slight drop that has triggered some liquidation in the crypto market. As BTC lost 2.99% of its price gain to trade at $104,027.71, 165,326 traders suffered liquidations. The combined liquidation figure topped $420 million. According to data from CoinGlass, the largest single liquidation occurred on the Binance exchange.
Though the price of Bitcoin dropped, the largest liquidation was not from the flagship digital currency but from other cryptocurrencies. In the past 24 hours, $76.7 million was liquidated from Bitcoin, while $100.98 million was liquidated from other cryptocurrencies.
Of the total Bitcoin liquidated, $54.1 million was from long traders who overshot their bet on the cryptocurrency.
The recent surge in the price of the coin likely influenced their optimistic bet. Unfortunately, the market moved against them as the BTC price cooled off after hitting $108,000. Crypto traders who bet on a downward trend for Bitcoin are also currently facing liquidation worth over $22 million.
Other liquidated assets are Ethereum ETH $3 890 24h volatility: 2.4% Market cap: $468.53 B Vol. 24h: $37.74 B with $55.54 million lost, the industry’s top meme coin Dogecoin DOGE $0.39 24h volatility: 3.3% Market cap: $57.39 B Vol. 24h: $4.07 B bagged $13.16 million in losses, and XRP at $21.91 million. A few days ago, when Bitcoin hit $106,000, traders suffered a total of $320 million in liquidations within 24 hours. Also, approximately $8 million was erased from the market within an hour. At the time, short traders bore more losses, while the drain remained relatively modest for long traders.
At the time, only BTC contributed $120 million to the total liquidations. Breaking this down, $104 million was wiped out from short positions, while long traders endured a relatively minor loss of nearly $16 million.
Per the current trend, the market generally suffers liquidation each time the Bitcoin price registers a new ATH.
Several analysts are pondering what could have led to the dip in Bitcoin’s price. Possible triggers include the United States Federal Reserve’s interest rate decision, scheduled for release today.
The financial sector is expecting a baseline of 25 bps rate cut by the central bank. Largely, the uncertainty in the Fed’s likely pivot has kept the market on the edge.
Mark Cuban believes the US central bank will opt for a 25 bps rate cut amid concerns about maintaining a restrictive monetary policy for too long. As a new year approaches, experts are concerned that the US Federal Reserve will just stick to three interest rate cuts.
In the meantime, traders are visibly cautious about making any investment move in the market. Arthur Hayes, the former CEO of BitMEX, has predicted that there could be major turbulence in the Bitcoin and crypto market around Donald Trump’s oath-taking ceremony. This event is scheduled to take place on January 20, 2025.
Since Bitcoin first fell below $104,000, it has rebounded and is set to reclaim the $105,000 mark.
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.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
