As a seasoned researcher who has witnessed the rollercoaster ride that is the cryptocurrency market, I can’t help but feel a mix of excitement and trepidation as I observe the recent surge in Bitcoin’s price. The $100,000 mark is indeed a significant milestone, but it seems to have triggered a wave of liquidations not unlike a firework display on New Year’s Eve.
The highly anticipated rise of Bitcoin above $100,000 has sparked excitement in the market, yet it also led to substantial liquidations. On December 4 alone, more than $676 million in perpetual futures contracts were liquidated on centralized platforms, as per CoinGlass data. This refers to Bitcoin’s current price ($102,841), its 24-hour volatility (7.6%), market capitalization ($2.04 T), and the volume traded within the past 24 hours ($166.29 B).
Approximately 209,359 individuals found themselves impacted by recent events, as those holding long positions suffered significant losses. In other words, investors who had predicted that Bitcoin (BTC) would rise in value were responsible for a whopping $373 million in withdrawals, while those who anticipated a fall added an additional $305 million to the total.
Bitcoin’s Historic Rally and Market Impact
Bitcoin’s upward trend started in November, stimulated by newfound optimism following the reelection of Donald Trump as the U.S. president. This news provided a fresh boost to BTC, propelling it to an unprecedented peak of $103,361. Yet, this swift climb took many traders who deal with derivatives by surprise.
According to CoinGlass data, Bitcoin was responsible for a staggering $182.5 million in total liquidations, while Ethereum (ETH) followed closely with $91.6 million. Similarly, Ripple‘s XRP and Solana (SOL) experienced substantial losses, tallying up to $56 million and $21 million in liquidations respectively within the past 24 hours. Here is a breakdown of their key metrics:
As an analyst, I’ve been observing the market trends of alternative cryptocurrencies such as Cardano (ADA) and Binance Coin (BNB). In the past 24 hours, these two digital assets have collectively experienced liquidations exceeding $112 million. Notably, the largest single liquidation took place on Bybit, where a trader lost approximately $8.91 million in Bitcoin positions. With Cardano’s current price at $1.22, 24-hour volatility of 2.2%, and a market cap of $43.55 billion, and Binance Coin priced at $730.1, 24-hour volatility of 4.9%, and a market cap of $106.45 billion, it’s clear that these assets are dynamic players in the crypto market.
In terms of clearing out leveraged trades, Binance took the lead, eliminating over $260 million in such positions. Not far behind were OKX and Bybit, reporting liquidation amounts of approximately $163 million and $161 million each.
XRP Overthrows USDT to Reclaim Its Place
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.
Yesterday’s XRP liquidation saw a temporary resurgence, pushing it back into third place among cryptocurrencies by market capitalization, surpassing Tether (USDT) for the first time in many years. Here are the current stats:
The value of the digital asset surged an impressive 415% to reach a new high of $2.5 for the first time, following its legal dispute with the U.S. Securities and Exchange Commission (SEC) in 2020. But this growth spurt didn’t last long; after that, the token’s value dropped significantly, resulting in approximately $69 million worth of liquidations – $36 million from long positions and $33 million from short ones.
Dogecoin, often recognized for its comparative stability among cryptocurrencies, saw around $22.5 million worth of liquidations recently. This market dip was partly fueled by news of South Korean President Yoon Suk Yeol implementing martial law during a political crisis. The turmoil in the country had a considerable effect on the crypto market, with local exchanges like Upbit observing steeper price drops than many international platforms.
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2024-12-05 17:21