Crypto Market Reels as $2B Liquidations Trigger Sharp Sell-Off

The crypto market experienced significant turbulence as liquidations exceeded $2 billion in a single day.

• Major assets like Bitcoin, Ethereum, and Solana saw sharp declines.

Massive Liquidations Trigger Steep Sell-Off

• Data from Coinglass indicates over $2 billion in long and short positions liquidated within 24 hours.
• BTC fell to $82,000; ETH dropped below $2,700.
• Long positions experienced severe losses, with $966 million in BTC and $407 million in ETH liquidations.
• The largest liquidation was a $36.78 million BTC-USD position on Hyperliquid.

Options Expiry and Whale Moves Add to Market Pressure

• Ahead of a $4.2 billion options expiry, traders favored puts, anticipating further declines.
• A BTC whale sold over 11,000 BTC ($1.3 billion), increasing downward pressure.
• However, large holders bought over $65 million in spot BTC around $85,000.

Fragile Liquidity Keeps Market on Edge

• Liquidity remains fragile following October's $19.5 billion liquidation event.
• Despite the turmoil, platforms like Solana and Fireblocks maintained operational stability.

Traders remain vigilant, assessing whether this correction will deepen or pave the way for recovery.