Over 108,000 Crypto Traders Liquidated for $280 Million in December
As 2024 concludes, over 108,000 crypto traders experienced liquidations totaling $280 million, reflecting ongoing market volatility.
In December, Bitcoin #BTC faced significant price fluctuations after reaching $108,000 earlier in the month. Despite showing resilience following the collapses of FTX in 2023 and Terra Luna in 2022, it remains a volatile asset class.
Traders using high leverage were particularly affected by recent price swings, leading to widespread liquidations on major exchanges.
Bitcoin Leads Liquidation Frenzy with $78M Losses
Data from CoinGlass indicates that Bitcoin accounted for $78.37 million of the total liquidations, with long traders incurring most losses during the market downturn. Long traders recorded over $52 million in losses within 24 hours, while short traders faced approximately $26 million in losses.
Other cryptocurrencies also faced notable liquidations; Ethereum #ETH saw over $38 million in leveraged positions closed, and Solana #SOL faced around $13 million in liquidations. Altcoins collectively contributed about $55 million to the overall liquidations.
The majority of these liquidations occurred on centralized exchanges, with Binance, OKX, and Bybit leading in volume. Binance was responsible for nearly 43% of the $280 million liquidated, according to CoinGlass data.
The largest single liquidation order took place on OKX, where a trader lost $2.58 million in one transaction.
A Landmark Year for Crypto
Despite the high volatility, traders continue to engage in leveraged positions to capitalize on price movements. In just the past hour, nearly $2 million was lost from leveraged positions, and approximately $20 million was liquidated four hours prior, underscoring the risks of high-leverage trading.
2024 marked a transformative year for the crypto industry, highlighted by the approval of spot Bitcoin ETFs in the United States and Hong Kong, which facilitated mainstream adoption.
These ETFs provided institutional and retail investors with regulated access to Bitcoin investments, boosting market optimism. Bitcoin's performance mirrored this trend, starting the year below $40,000 and reaching an all-time high of $108,000 in December, driven by increased institutional interest and corporate adoption as a reserve asset against inflation.
Ethereum also performed well, supported by the launch of Ethereum-based ETFs and the growth of decentralized finance (DeFi) protocols. The ecosystem saw innovations in scalability and sustainability gaining traction among developers and investors.