Crypto Traders Face $223 Million in Liquidations on December 25
On December 25, the crypto futures market experienced $223 million in liquidations, highlighting ongoing volatility despite holiday festivities. CoinGlass reported that long traders faced losses of $153.68 million, while short traders lost $69 million.
Ethereum Traders Bear the Market Brunt
Major cryptocurrencies such as Bitcoin, Ethereum, and Solana were significantly affected, with Ethereum futures contracts incurring nearly $40 million in liquidations. Bitcoin followed closely with approximately $36 million in liquidations, and altcoins like Solana recorded around $5 million. Together, these assets contributed to $40 million in closed leveraged positions.
This data underscores the persistent volatility in the crypto market, even during traditionally quieter trading periods.
The substantial liquidations reflect an ongoing struggle between bullish and bearish sentiment. Analysts suggest recent market recovery indicates underlying strength as traders adjust their positions for the new year.
Market Sentiment and Recovery Signals
Despite the liquidations, the crypto market showed signs of recovery. Bitcoin rebounded from a low of $95,000 to approximately $98,337, while Ethereum stabilized above $3,400 after notable price fluctuations.
The total market valuation stands at $3.41 trillion, with Bitcoin holding a dominance of 57.16%.
Additionally, institutional investors withdrew approximately $338.38 million from Bitcoin spot exchange-traded funds (ETFs) on Wednesday, reflecting continued caution in the sector. Significant outflows were noted from BlackRock's IBIT ($188 million) and Fidelity's FBTC ($83 million), along with over $75 million from the ARK 21Shares Bitcoin ETF (ARKB). Conversely, the Bitwise Bitcoin ETF (BITB) saw inflows exceeding $8 million, marking a rare positive outcome amidst challenges for Bitcoin ETFs.