Crypto Liquidations Hit $500M After Bitcoin Drops to $96K

Cryptocurrency Market Plunges, Liquidations Hit $500 Million

Bitcoin's recent failure to surpass the $100,000 threshold triggered a significant cryptocurrency liquidation event. Over $500 million worth of crypto positions were wiped out within a 24-hour period.

Data from CoinGlass revealed that long liquidations accounted for $379 million, while short liquidations totaled $125.49 million. Bitcoin and Ether were the primary contributors, with liquidations totaling $121 million.

Other prominent altcoins, such as Dogecoin, XRP, and Stellar, experienced substantial liquidations of $34.20 million, $30.27 million, and $18.95 million, respectively.

This market downturn followed a notable rally in several altcoins. XLM, for example, surged by 50% over November 23-24. Dogecoin reached its highest price since May 2021, matching its previous peak.

Miles Deutscher, an industry analyst, suggests that traders from the previous market cycle are re-entering the market and investing in familiar tokens. Some perceive this as an opportunity to invest in utility tokens trading below their perceived value.

Presently, Bitcoin is trading at $97,790, slightly below its recent all-time high of $99,645. Despite the dip, Bitcoin has grown nearly 44% since early November. Its dominance in the cryptocurrency market remains strong at 56.2%, with the market valued at $3.46 trillion.