Crypto Liquidations Hit $1 Billion With Market Correction
Over $1 billion was liquidated in the crypto market within 24 hours, as participants were caught off guard by the strong momentum seen over the past 30 days.
Despite the downturn, some analysts suggest it may be temporary.
“We’ve had such a bullish narrative over the last month that the market was completely unprepared for bad news. Now we’re seeing indiscriminate selling,” said Swyftx lead analyst Pav Hundal in comments to Cointelegraph.
“It’s not the start of the Christmas run-in we’d hoped for, but it looks like short-term angst,” Hundal added.
On Dec. 19, liquidations totaled about $1.02 billion, with approximately $856.7 million from long positions, according to CoinGlass data.
During the same period, Bitcoin fell 3.36%, dropping below the $100,000 psychological level to trade at $97,350 at the time of publication, based on CoinMarketCap data.
This wasn’t the first time this month that Bitcoin’s dip below $100,000 resulted in large liquidations.
On Dec. 5, a sudden 5.47% decline to under $93,000 wiped out $300 million in minutes.
Similarly, on Dec. 10, a broader market downturn led to $1.7 billion in leveraged positions being liquidated within 24 hours—CoinGlass described it as the largest long liquidation of this cycle so far.
In response to the recent liquidations, Bitcoin maximalist Fred Krueger remarked in a Dec. 19 post on X that the only way to “screw” up trading Bitcoin is by using leverage.
Despite the sell-off, Hundal remains optimistic, noting the anticipated "Santa rally" could still materialize.
Real Vision’s chief crypto analyst Jamie Coutts also hinted at a possible buying opportunity in a Dec. 20 post on X, while crypto analyst Caleb Franzen described the recent volatility as typical of a bull market.
Franzen pointed out in a Dec. 19 post that during the last bull run, Bitcoin experienced nine pullbacks over 16 months, all of which were followed by higher highs. “Buckle up, buttercup,” he added.
Looking ahead, Hundal expects the crypto market to begin factoring in expectations for the Trump administration.
Donald Trump’s inauguration as the 47th president is scheduled for Jan. 20, 2025, and market participants are eagerly anticipating his potential plans for a U.S. Bitcoin strategic reserve.
“One side of the market is going to be on the wrong side of that bet, so I’d expect to see some volatility when the new administration comes in and the direction becomes a little clearer,” Hundal concluded.
Sources:
https://www.coinglass.com/LiquidationData
https://coinmarketcap.com/currencies/bitcoin/
https://www.coinglass.com/LiquidationData
https://x.com/dotkrueger/status/1869587574827917547?s=46
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