Crypto Market Sees $320 Million Liquidations Amid Bitcoin’s Price Surge
Leveraged crypto traders are experiencing market volatility following Bitcoin's historic rise to $106,000. This surge resulted in $320 million in liquidations within 24 hours and approximately $8 million lost in the last hour. Traders with high-leverage positions failed to meet margin calls, leading to forced sales.
According to CoinGlass data, most liquidations came from short traders who expected a decline in cryptocurrencies such as Bitcoin (BTC), Ethereum, Ripple's XRP, Dogecoin, and Pepe coin. Approximately 94,559 short traders collectively incurred losses of about $196.41 million as the market defied their expectations.
Short Traders Hit Hard
Long traders faced comparatively modest losses. As of December 16, around $117 million in leveraged long positions were forcibly closed. CoinGlass data indicated that BTC contributed $120 million to total liquidations, predominantly affecting short traders. Short positions accounted for $104 million in losses, while long traders faced nearly $16 million in losses.
In recent weeks, short traders have consistently lost ground following the market’s resurgence after the U.S. elections in November. On December 9, 9,514,400 traders experienced liquidations totaling $1.51 billion, with long positions losing about $1.38 billion and short positions losing $136.7 million. Bitcoin liquidations during this period totaled $163.4 million, primarily impacting short traders.
Ethereum and Altcoins Also Face Losses
On the same day, Bitcoin liquidations reached a three-year high due to a sudden price drop hitting a key market target. These liquidations followed a significant event on December 5, which saw $1.1 billion in total crypto liquidations, marking the largest event since December 2021, driven by major holders experiencing a "leverage flush."
Liquidations were not limited to Bitcoin; other cryptocurrencies also faced substantial losses amid unpredictable market behavior. CoinGlass reported that Ethereum traders suffered approximately $44 million in liquidations. Among altcoins, Solana, Ethena, and Arbitrum recorded losses of $9 million, $6 million, and $1.5 million, respectively. Overall, other altcoins faced combined liquidations exceeding $44 million, with $30 million attributed to long traders.