Key Points
- Bitcoin’s surge to $106,000 triggered $320 million in liquidations, with $8 million erased in the last hour.
- Most liquidations were from short traders betting against cryptocurrencies like Bitcoin, Ethereum, and others.
The rise of Bitcoin to a record high of $106,000 on Monday sparked market volatility, leading to $320 million in liquidations within 24 hours, and around $8 million wiped from the market in the last hour. High-leverage traders were unable to meet margin calls, resulting in a wave of forced sales.
Impact on Short Traders
CoinGlass data shows that the majority of liquidations in the past 24 hours were from short traders who had expected a drop in the prices of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP, Dogecoin, and Pepe coin. These traders, numbering 94,559, collectively lost approximately $196.41 million as the market defied their predictions.
Long traders, on the other hand, experienced relatively minor losses compared to their short counterparts. As of Monday, December 16, about $117 million in leveraged long positions were forcibly closed. Bitcoin alone contributed $120 million to the total liquidations, with short traders bearing the majority of the losses. During this liquidation phase, $104 million was wiped out from short positions, while long traders suffered a relatively minor loss of nearly $16 million.
In recent weeks, following the market’s resurgence after the successful conclusion of the U.S. elections in November, short traders have consistently been on the losing side, frequently falling victim to bullish market movements.
Losses Extend to Ethereum and Altcoins
The trend changed on Monday, December 9, when 9,514,400 traders faced liquidations totaling $1.51 billion. During this liquidation window, about $1.38 billion of the total loss came from long positions and $136.7 million from short positions. Bitcoin liquidations during this period totaled $163.4 million, with most of the losses affecting short traders.
On the same day, Bitcoin liquidations reached a three-year high as a sudden BTC price drop hit a key market target. These liquidations followed the $1.1 billion in total crypto liquidations on December 5, marking the largest liquidation event since December 2021, attributed to major holders experiencing a “leverage flush”.
Today’s liquidations were not limited to Bitcoin. Other cryptocurrencies also suffered significant losses, as the crypto market continued to defy investors’ expectations with its unpredictable behavior. Ethereum traders faced approximately $44 million in liquidations. Among altcoins, Solana, Ethena, and Arbitrum recorded losses of $9 million, $6 million, and $1.5 million, respectively. In total, other altcoins faced combined liquidations exceeding $44 million, with $30 million attributed to long traders.
