Crypto Liquidations Exceed $500M, Memecoin Market Cap Drops 5.6%

Crypto markets experienced significant volatility on Dec. 5, with liquidations exceeding $500 million, highlighting concerns over weekend market depth.

Total liquidations: $499.27 million in 24 hours
$419.19 million in long positions and $80.08 million in short positions affected
More than 142,000 traders impacted
Largest single liquidation: $8.5 million on Hyperliquid's BTC-USD market

Crypto market liquidation hit $500 million, Dec 5, 2025 | Source: Coinglass

Recurring Friday Liquidations Indicate Structural Issues

US public companies hold 1,061,940 [BTC](https://holder.io/coins/btc/) (~$94 billion)
Dec. 5 event follows previous major liquidations on Fridays
Example: Oct. 10, 2025, saw $20 billion wiped out due to US-China trade tensions
On Nov. 14, 2025, $1.4 billion positions closed as [Bitcoin](https://holder.io/coins/btc/) fell below $100,000

The memecoin sector was severely affected:

Aggregate memecoin market cap dropped 5.6% to $46.18 billion
Trading volumes reached $4.24 billion
Pudgy Penguins, [PEPE](https://holder.io/coins/pepe/), and Pipin saw steep declines of 10.5%, 9.4%, and 8.5%, respectively
[Dogecoin](https://holder.io/coins/doge/) lost 7.2%, while [Shiba Inu](https://holder.io/coins/shib/) decreased by 5.9%

Cumulative Memecoin Sector Marketcap Plunges 5.6% on Dec 5, 2025 | Source: Coingecko

Thinning liquidity increases the risk of further weekend volatility.