Key Takeaways:
- Largest Crypto Liquidation Since 2021: The cryptocurrency market saw $1.6B in liquidations, primarily driven by aggressive Bitcoin sell-offs on Coinbase, marking the biggest reset since 2021.
- Coinbase’s Role: Coinbase traders triggered the sell-off, with long positions in Bitcoin and Ethereum seeing significant losses of $142M and $208M, respectively.
- Market Reset Optimism: While altcoins suffered heavily, some analysts view this liquidation event as a potential reset for a healthier market trajectory.
The cryptocurrency market faced a dramatic $1.6 billion liquidation event, the largest since 2021, driven by aggressive Bitcoin sell-offs on Coinbase.
This triggered a cascade of forced liquidations, particularly affecting overleveraged positions.
THE BIGGEST LIQUIDATION SINCE 2021!
— Ash Crypto (@Ashcryptoreal) December 10, 2024
WHY DOES THE MARKET DUMP AND WIPE ALMOST $2 BILLION TRADES IN JUST 24 HOURS?
HERE'S WHAT HAPPENED:
1. COINBASE TRADERS STARTED THE SELL-OFF.
COINBASE TRADERS BEGAN SELLING 1 HOUR BEFORE THE MAJOR DUMP. THE SELL PRESSURE PUSHED THE… pic.twitter.com/upknm2uftF
Bitcoin’s price dropped sharply, closing an inefficiency gap with a 96% probability, and Ethereum saw significant losses as well.
Altcoins, including XRP, experienced substantial declines amid what analysts described as unusual market conditions.
Today’s dump resulted in the biggest liquidation since 2021. I would like to present a microstructure view of this entire situation. As always, this thread is full of insights, charts, and comments.
— ltrd (@ltrd_) December 10, 2024
Retweet if you enjoyed the analysis. pic.twitter.com/uCbZmPFbc5
Analysis by market observer Ltrd highlighted that Coinbase traders initiated the sell-off about an hour before the main dump, amplifying the pressure.
This set off a record-breaking wave of liquidations, with Bitcoin long positions losing $142 million and Ethereum longs losing $208 million within 24 hours, according to CoinGlass.
The scale of the event, described as the biggest long liquidation of this bull cycle, disrupted the broader market.
With leverage wiped out, altcoins began regaining key support levels.
The focus now turns to whether this reset will stabilize the market or lead to continued volatility in the days ahead.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
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