Crypto Liquidation Hits $389M as Altcoins Retest New Highs

by

As an experienced analyst with a decade-long career in the crypto market, I find myself both intrigued and cautious regarding the recent surge in liquidations across various exchanges. With over $389 million exiting the market within 24 hours, it’s undeniable that short traders are feeling the heat as Bitcoin and other digital assets retest new price levels.

Within a day, approximately $389 million in various digital assets was withdrawn from multiple crypto exchanges due to liquidations. As reported by CoinGlass, this action affected around 116,183 traders, with their total liquidation amounting to $389.10 million. Interestingly, the largest single liquidation was a significant one, valued at approximately $10.63 million, which took place on Binance.

Crypto Liquidation Soar as Short Traders Lose Bitcoin Bet

Bitcoin (BTC) reached an all-time high of $99,000 this week and currently stands at $99,297.86, marking a 2.31% rise over the past 24 hours. Its 24-hour volatility is 0.8%, while its market capitalization amounts to an impressive $1.95 trillion. Over the last day, the trading volume for Bitcoin has totaled $109.75 billion.

Ethereum

ETH
$3 330



24h volatility:
6.1%


Market cap:
$400.73 B


Vol. 24h:
$56.95 B

, Solana

SOL
$257.9



24h volatility:
6.4%


Market cap:
$122.44 B


Vol. 24h:
$14.74 B

, XRP

XRP
$1.40



24h volatility:
24.5%


Market cap:
$79.66 B


Vol. 24h:
$19.73 B

, and other altcoins have also retested new price levels. These price gains may have surprised traders, as short traders suffered the most liquidation on their holdings.

Over a 24-hour period, Bitcoin saw the highest amount of liquidation at approximately $114.66 million. Out of this total, around $80.90 million was from short sellers, while long traders accounted for about $76.71 million. In comparison, Ethereum recorded a liquidation of $76.71 million, with $47.81 million attributed to short sellers. Additionally, other altcoins not displayed on the Coinglass liquidation heatmap experienced losses up to $34.1 million collectively.

Currently, traders who wagered on a decline for Bitcoin are being forced to sell off their positions due to its unexpected surge in value. In the past week alone, BTC has experienced a 12.33% price increase and a market capitalization of $1.96 trillion. This surge includes those who overestimated Bitcoin’s potential rise, as they too are tallying their losses.

Significantly, it was expected that crypto market prices would surge following the election due to Donald Trump’s promises to incorporate cryptocurrencies within the U.S. financial infrastructure. Furthermore, his proposed plan includes establishing a strategic reserve for Bitcoin.

Under our leadership, we will maintain full control over every single Bitcoin that the U.S. government already possesses, as well as any new ones acquired during our term. (Trump)

The president-elect of the United States has indicated a desire to discontinue what some view as the Securities and Exchange Commission’s (SEC) aggressive enforcement actions against cryptocurrency companies. One strategy being considered is the replacement of Gary Gensler, who currently holds the position of agency chairman. With an increasing number of crypto exchanges expressing concerns over what they perceive as excessive SEC involvement in their sector.

US States Sues SEC for Crypto Overreach

17 U.S. states recently teamed up with Gensler, the agency, and fellow commissioners to initiate a lawsuit last week, claiming that their actions in regulating the $3 trillion cryptocurrency market are an unconstitutional overstep. This joint action was supported by the crypto education advocacy group, DeFi Education Fund.

Via their submissions, they advocated for a well-structured regulatory framework within the Decentralized Finance (DeFi) industry.

According to their perspective, expanding the U.S. Securities and Exchange Commission’s (SEC) regulation over the cryptocurrency sector infringes upon the core values of federalism. This viewpoint considers such action as blatantly unconstitutional. Moreover, the lawsuit argues that government bodies should function within their constitutionally assigned roles to ensure they act lawfully and appropriately.

1) Resolutions to these issues might arrive when Trump officially takes office. If skillfully navigated, the cryptocurrency market, featuring both assets and liquidity levels, could witness further price surges and potential liquidations.

Read More

2024-11-22 14:00