Heavy Liquidations Wipe Out $534 Million From Crypto Markets Overnight

Crypto Liquidations Surge to $534 Million

Data from CoinGlass, a crypto derivatives analysis platform, indicates a 43% increase in liquidations over the past 24 hours, amounting to $534 million. The total includes $181 million in short positions and $352 million in long positions.

Notable Liquidated Assets and Exchanges

Ripple (XRP) experienced the highest liquidations at $69.12 million, with Bitcoin (BTC) following closely at $60.75 million. Ethereum (ETH) accounted for $57.94 million, Dogecoin (DOGE) for $32.13 million, Hedera (HBAR) for $17.41 million, and Solana (SOL) for $14.48 million.

Binance topped the list of exchanges with $222 million in liquidations, where long positions accounted for 63%. OKX ranked second with $134 million, and Bybit came in third with $124 million.

Market Dynamics and Recent Trends

The recent surge in liquidations is noteworthy given the market's steady growth over time. Despite this, prices have recently exhibited sideways movement. CoinMarketCap data indicates a market capitalization of $3.46 trillion, with over $1.2 trillion invested in crypto in the past month.

Bitcoin's Missed $100,000 Mark and Subsequent Impact

Last week, Bitcoin failed to break the $100,000 threshold, causing significant liquidations. In the 24 hours leading up to November 25th, losses exceeded $491 million.

Currently, Bitcoin trades above $94,500, with a 2.6% weekly gain. Ethereum has seen a more substantial 8.29% rise, while Dogecoin follows closely with an 8.9% increase. XRP has been the standout performer among the top ten assets, surging 95% over the past week. Cardano (ADA) has climbed 36.64% to $1.28, and Avalanche (AVAX) has jumped 29% to $51.7.

U.S. Government's Potential Bitcoin Sales

Amidst the bullish market sentiment, the U.S. government is reportedly preparing to sell some of its Bitcoin holdings. Lookonchain data reveals billion-dollar transfers to Coinbase, including Bitcoin seized from the Silk Road liquidation.

This move has elicited mixed reactions. Some suggest the Biden administration is attempting to obstruct the incoming Trump administration, which is perceived as more favorable towards Bitcoin. Others believe it is merely a precautionary measure to secure the assets.

However, some experts caution against selling Bitcoin. U.S. Space Force Major Jason Lowery considers such a move a "huge strategic mistake" and advocates for retaining Bitcoin regardless of market conditions.