Crypto Liquidation Reaches $389 Million Amid Rising Altcoin Prices
In 24 hours, over $389 million left various crypto exchanges due to liquidation. According to CoinGlass, 116,183 traders were liquidated, with the largest single liquidation amounting to $10.63 million on Binance.
Crypto Liquidation Soars as Short Traders Lose Bitcoin Bet
Bitcoin #BTC rose to $99,000 this week, reaching a new All-Time High (ATH) of $99,297.86, a 2.31% increase in 24 hours.
Ethereum #ETH, Solana #SOL, XRP #XRP, and other altcoins also experienced price gains, leading to significant losses for short traders. In the last 24 hours, $114.66 million was liquidated from Bitcoin, with $80.90 million from short positions and $76.71 million from long positions. Ethereum saw $76.71 million liquidated, including $47.81 million from short traders. Other altcoins not listed on the Coinglass heatmap recorded up to $34.1 million in losses.
Traders betting against Bitcoin are facing liquidation as the asset has risen significantly, recording a 12.33% price increase over the past week and a market cap of $1.96 trillion. Those who anticipated further declines are now incurring losses.
The crypto ecosystem had expected such price spikes following the elections, influenced by Donald Trump’s campaign pledges to integrate cryptocurrencies into the financial system and establish a Bitcoin strategic reserve.
Trump stated, “It will be the policy of my administration to keep 100% of all the Bitcoin the US government currently holds or acquires.” He also aims to end perceived SEC enforcement against crypto firms, which includes plans to remove Gary Gensler, the SEC chairman. Many crypto exchanges have criticized the SEC's regulatory approach.
US States Sue SEC for Crypto Overreach
Last week, 18 US states filed a lawsuit against Gensler and the SEC, citing 'unconstitutional overreach' concerning the $3 trillion crypto market. This action was supported by the crypto advocacy group DeFi Education Fund.
The lawsuit demands reasonable regulatory policies within the Decentralized Finance (DeFi) sector, arguing that the SEC's actions violate fundamental principles of federalism. The suit asserts that government agencies must operate within their constitutionally defined roles.
Potential solutions to these issues may arise once Trump assumes office, possibly leading to further price increases and additional liquidations in the crypto landscape.