CoinGlass Reports $534 Million in Crypto Liquidations Within 24 Hours
Data from crypto derivatives analysis platform CoinGlass indicates that total crypto liquidations increased by 43% to $534 million in the past 24 hours. This included $181 million in short positions and $352 million in long positions.
The asset with the highest liquidation was XRP, totaling $69.12 million, followed by Bitcoin at $60.75 million. Other significant liquidations included Ether at $57.94 million, Dogecoin at $32.13 million, Hedera at $17.41 million, and Solana at $14.48 million.
Binance led exchanges with $222 million in liquidations, of which 63% were long positions. OKX followed with $134 million, while Bybit reported $124 million.
Crypto Liquidations Likely Caused by Sideways Market Swing
The recent surge in liquidations is notable as the market has experienced mostly sideways movement despite an overall increase since the Trump win. Current data from CoinMarketCap shows a market capitalization of $3.46 trillion, with investors spending over $1.2 trillion on crypto in the past month.
Last week, Bitcoin failed to surpass the $100,000 mark, leading to heavy liquidations exceeding $491 million within 24 hours ending November 25. Currently, Bitcoin is trading above $95,400, having gained about 2.6% over the last week. Ether recorded an 8.29% increase, while Dogecoin rose by 8.9%. Among the top ten assets by market capitalization, XRP saw a remarkable gain of more than 95%, while Cardano rose 36.64% to $1.28 and Avalanche gained 29% to 51.7%.
Possibility of US Bitcoin Sale Lingers Despite Market Action
Despite the bullish trend in the crypto market, the US government appears to be preparing to sell its Bitcoin holdings. Data from Lookonchain shows multiple transfers worth billions to Coinbase, involving Bitcoin from the Silk Road liquidation.
Reactions vary; some speculate that the Biden administration may be attempting to undermine the incoming pro-Bitcoin Trump government, while others believe it aims to protect the assets. Concerns have been raised regarding the potential sale of Bitcoin. United States Space Force major Jason Lowery described it as “a huge strategic mistake,” advocating against any sale regardless of price.
Lowery, author of “Softwar: A Novel Theory on Power Projection and the National Strategic Significance of Bitcoin,” suggested that the government lacks understanding of its Bitcoin holdings. He cautioned about justifying future actions similar to Executive Order EO 6102, which prohibited gold hoarding.
Coinbase CEO Brian Armstrong aligns with Lowery's view, stating that the government should not sell Bitcoin.