Traders Lost $1.4 Billion as The Crypto Market Bleeds
The largest single liquidation order, valued at $19.69 million, occurred on Binance for ETHUSDT, highlighting the significant impact on even major exchanges.
On December 9th, 2024, the crypto market experienced a period of unprecedented volatility resulting in record-breaking liquidations exceeding $1.54 billion within 24 hours.
The staggering number represents the culmination of a dramatic market downturn, with over $800 million in crypto positions vanishing in a single hour – a new record. As of the time of writing a total of 522,853 traders were liquidated during this period.
The largest single liquidation order, valued at $19.69 million, occurred on Binance for ETHUSDT, highlighting the significant impact on even major exchanges. The overwhelming majority of liquidations impacted long positions, indicating a significant number of traders were betting on price increases before the sharp market decline.
Crypto Market Downturn Slides as Liquidation Pile
This downturn impacted altcoins particularly severely, with some experiencing price crashes exceeding 30%. Among the altcoins significantly affected were XRP, SOL, ETH, DOGE, SUI, LINK, ADA, and WIF, illustrating the widespread nature of the losses.
Moreover, the sheer volume of liquidations continued unabated, with an additional $122 million wiped out from the market within a single hour following the initial surge.
The severity of these events has prompted diverse interpretations within the crypto space, While some view the substantial losses as a catastrophic market failure, others perceive the situation as a necessary “market reset,” suggesting that the sharp decline could ultimately facilitate a period of recovery and renewed growth. This divergence in perspectives highlights the inherent volatility and risk associated with cryptocurrency investments.
Additionally, liquidations caused an immediate negative impact, but substantial investment flowed into digital asset investment products today. Weekly inflows reached a record $3.85 billion, with Bitcoin attracting $2.5 billion.
The notable inflows bring Bitcoin’s year-to-date inflow total to an impressive $36.5 billion. Furthermore, Ethereum experienced its highest-ever weekly inflow, reaching $1.2 billion – exceeding even the inflows observed following the July ETF launch. This significant influx of capital suggests a degree of continued investor confidence despite the recent volatility.
The confluence of record-breaking liquidations and substantial investment inflows presents a complex picture of the current state of the cryptocurrency market.
