Over 108,000 Crypto Traders End 2024 with $280M in Liquidations

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As a seasoned researcher who has witnessed the crypto market’s evolution over the past decade, I can confidently say that 2024 has been nothing short of exhilarating – a rollercoaster ride for the ages!

The recent liquidation frenzy is a stark reminder of the unpredictable nature of this asset class. It’s like trying to catch water with a sieve, you think you’ve got it, but it slips through your fingers just when you least expect it.

However, amidst these losses, it’s essential to maintain perspective. The crypto market is still in its infancy compared to traditional finance, and the rapid growth we’re seeing is a testament to its potential.

Looking back at 2024, I can’t help but marvel at the milestones achieved by the industry. From the approval of spot Bitcoin ETFs in the US and Hong Kong to Ethereum‘s continued dominance in DeFi, it’s clear that we’re moving towards a future where digital assets are an integral part of our financial system.

On a lighter note, I can’t help but chuckle at the irony – just when you think you’ve got the market figured out, it reminds you who’s really in control! But hey, that’s crypto for you – always keeping us on our toes!

Towards the end of 2024, more than 108,000 cryptocurrency traders encountered liquidations totaling around $280 million, demonstrating the ongoing turbulence of the crypto market.

As I, a researcher, observed at year-end 2024, Bitcoin (BTC) underwent significant ups and downs following its impressive surge to $108,000 earlier in December. Despite the resilience shown by this pioneering crypto asset over two years of market turmoil triggered by the FTX crash in 2023 and Terra Luna’s implosion in 2022, it continues to be a notably volatile asset class. In those final days, Bitcoin’s value stood at approximately $93,927. The 24-hour volatility was recorded at 0.4%, the market capitalization amounted to a staggering $1.86 trillion, and the 24-hour trading volume reached an impressive $55.75 billion.

Highly leveraged crypto traders suffered significant losses due to recent market fluctuations, with abrupt drops causing numerous account closures on popular trading platforms.

Bitcoin Leads Liquidation Frenzy with $78M Losses

Based on figures from CoinGlass, Bitcoin was responsible for approximately $78.37 million of the total liquidations during that period. Most of these losses were experienced by long traders as they suffered over $52 million in losses during the recent market downturn. In contrast, short traders saw a comparatively smaller loss of around $26 million within the last 24 hours.

Apart from Bitcoin, other popular cryptocurrencies such as Ethereum (ETH) and Solana (SOL) have experienced substantial liquidations. In the case of Ethereum, around $38 million worth of leveraged positions were forcibly closed, while Solana accounted for approximately $13 million in similar liquidations.

In simpler terms, a combined total of about $55 million from various alternative cryptocurrencies significantly influenced the overall market disruption, highlighting their widespread influence.

Most of these closures took place on major cryptocurrency trading platforms, with Binance, OKX, and Bybit being at the forefront. Notably, Binance, the largest crypto exchange globally, was responsible for about 43% of the $280 million in liquidations, based on data from CoinGlass.

Although Binance leads in overall liquidations, it’s worth noting that the largest individual liquidation order of $2.58 million took place on OKX, resulting in a significant loss for one trader.

A Landmark Year for Crypto

In the current unpredictable state of the cryptocurrency market, traders persistently take up leveraged trades, aiming to profit from fluctuations in prices.

Unfortunately, not everyone is spared from this situation. Just within the last hour, approximately $2 million has been lost due to leveraged positions. Earlier today, around $20 million was also wiped out in the futures market, demonstrating the unforgiving risks that come with high-leverage trading.

As an analyst, I can confidently say that while we’ve experienced some setbacks this year, 2024 stands out as a pivotal moment in the evolution of the crypto industry. The green light given to spot Bitcoin ETFs in both the United States and Hong Kong signifies a significant shift towards mainstream acceptance. This approval marks a new chapter in our journey, one that will undoubtedly shape the future of digital currencies.

Through these ETFs, both institutional and individual investors were offered a secure, regulatory-approved route for investing in Bitcoin, thereby boosting enthusiasm and stimulating increased market involvement.

This year, Bitcoin’s progress has closely followed these developments. Initially trading under $40,000 at the start of the year, it skyrocketed to a record high of $108,000 in December, fueled by increasing institutional investment and business adoption. A number of prominent companies have adopted Bitcoin as a form of reserve currency, praising its potential for safeguarding against inflation and economic instability.

2021 was a successful year for Ethereum as well, boosted by the debut of Ethereum-linked ETFs and the increasing acceptance of decentralized finance (DeFi) platforms. The ecosystem surrounding the network thrived, with advancements in scalability and sustainability gaining popularity among developers and investors.

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2024-12-31 12:30