Crypto Market Liquidations Exceed $250M Before U.S. GDP Announcement

The crypto market is experiencing increased selling pressure, with daily liquidations surpassing $250 million ahead of the U.S. GDP data release on Dec. 23.

Bitcoin's price has declined by 2.4%, trading at $87,546 after failing to break the $90,000 level.
Ethereum and other altcoins have similarly corrected as market volatility increases.
The overall crypto market cap dropped by 2.46% to $2.96 trillion.
Market liquidations have surged past $250 million in the last 24 hours, with $192 million in long liquidations (source: Coinglass).
The Crypto Fear & Greed Index fell to 24, indicating extreme fear among investors.
Total crypto derivatives open interest rose by 1.1% to $129 billion, suggesting traders are maintaining positions despite uncertainty.
Upcoming macroeconomic events include key U.S. GDP data on Dec. 23 and weekly jobless claims on Dec. 24.

On-chain analysis by CryptoQuant highlights weakening buying pressure, with declining trading activity and network participation.

Active addresses decline signals weakening network activity. | Source: CryptoQuant

CryptoQuant noted a steady decline in buy-volume divergence on Binance futures since August.
Despite previous price increases, trading volume consistently fell, indicating reduced network engagement.
The firm suggests the crypto market may require more time to stabilize and recover.