The cryptocurrency market was hit with a big shake on December 20, the last Friday before the Christmas holidays. Crypto traders have lost over $1.4 billion to position liquidation in the past 24 hours, causing a trading bloodbath.
According to the data obtained by Finbold from CoinGlass As of Friday morning, 427,593 traders had been liquidated since Thursday. The total liquidations are up to $1.40 billion, of which $1.21 billion was from long positions.
In particular, most of the liquidations occurred in the last four hours, liquidating $505.10 million from crypto traders. The majority of projects are falling below appropriate support levels, prompting panic sales in exchanges around the world.
In particular, Bitcoin (BTC) and Ethereum (ETH) led the pool with a liquidation of $326.23 million and $307.79 million each, respectively. Ethereum also had its largest single liquidation order on Binance against USDT Tether, liquidating a $15.80 million long position.
Crypto projects lost over $400B of market cap in the last 24 hours
By the way, TradingView's Crypto Total Market Cap Index (TOTAL) shows that over $400 billion just disappeared from cryptocurrencies in the same period – a drop of 11.61%.
As of this writing, TOTAL has a capitalization of $3.08 trillion, reaching a local base of $3.05 trillion. On December 17, the index peaked at a market cap of $3.71 trillion, with current values representing a 17% crash.
Although all cryptocurrencies have shown losses, some, such as Bitcoin, have exceeded the index. On the other hand, memecoins are, by far, the biggest losers of this recent crash, with huge losses.
In the meantime, crypto analysts and traders took to X to share insights, express frustrations, and take precautions.
💸 With Bitcoin dropping to as low as $95.5K today, the ratio of crypto conversations that are about crypto dip buying has reached its highest level in over 8 months. The last time we saw the crowd nearly as enthusiastic about buying dip was the big crash on August 4th. Since… pic.twitter.com/39NlpnGMCs
— Santiment (@santimentfeed) December 20, 2024
Some believe this is a dip worth buying, but there is currently no consensus on whether the market will see another dip – requiring proper risk management as things develop amid fears, growing uncertainty and doubt (FUD) about what is to come. who previously collected cryptocurrencies.
Overall, the most popular advice now is to be careful with leverage, favoring spot buying for those who are still optimistic.
Featured image from Shutterstock.
Source: https://finbold.com/bloodbath-crypto-traders-lose-1-4-billion-in-24-hours-of-massive-liquidations/
