Key Points
- Bitcoin’s surge past $100,000 triggered over $676 million in crypto liquidations on December 4.
- 209,359 traders were affected, with long positions accounting for $373 million in liquidations.
The long-anticipated surge of Bitcoin (BTC) past the $100,000 mark created quite a stir in the market, but it also led to significant liquidations.
Data from CoinGlass reveals that on December 4, perpetual futures contracts worth over $676 million were liquidated on centralized exchanges.
A total of 209,359 traders were impacted, with the majority of the losses borne by long positions.
Investors who wagered on Bitcoin (BTC) climbing higher contributed to $373 million in liquidations, while short positions added another $305 million.
Bitcoin’s Historic Rally and the Market Impact
The rally of Bitcoin (BTC) began in November, sparked by renewed optimism following the re-election of Donald Trump as US president.
This news gave Bitcoin (BTC) fresh momentum, propelling it to an all-time high of $103,361. However, this sharp rise caught many derivatives traders off guard.
CoinGlass data indicates that Bitcoin (BTC) alone contributed $182.5 million to the total liquidations, while Ethereum (ETH) accounted for $91.6 million.
Ripple’s XRP and Solana also experienced significant losses, recording $56 million and $21 million in liquidations respectively.
Other cryptocurrencies, including Cardano and Binance Coin, experienced combined liquidations of more than $112 million.
The largest single liquidation occurred on Bybit, where a trader lost $8.91 million in Bitcoin (BTC) positions.
Binance led the liquidation activity among exchanges, eliminating more than $260 million in leveraged positions. OKX and Bybit followed closely, recording $163 million and $161 million in liquidations respectively.
XRP Overthrows USDT to Reclaim Its Place
The surge in liquidations also continued to increase volatility for derivatives traders.
Just a day earlier, $588 million in futures contracts were liquidated, bringing the two-day total to over $1.26 billion.
Tuesday’s liquidation was led by XRP, which briefly reclaimed its spot as the third-largest cryptocurrency by market capitalization, overtaking Tether for the first time in years.
The digital asset soared 415%, peaking at $2.5 for the first time following its legal battle with the United States Securities and Exchange Commission (SEC) in 2020.
However, this upward trajectory was short-lived as the token’s price later declined, leading to $69 million in liquidations – $36 million in longs and $33 million in shorts.
Dogecoin, typically known for its relative stability compared to other cryptocurrencies, experienced approximately $22.5 million in liquidations.
The market downturn was partly influenced by reports of South Korean President Yoon Suk Yeol imposing martial law amid a political crisis.
This unrest significantly impacted the crypto market, with South Korean exchanges like Upbit witnessing sharper price declines than their global counterparts.
