Bitcoin falls to shocking levels, triggering a crypto liquidation event for thousands of traders across the market.
While the crypto bull market often sparks feelings of euphoria, the volatility that makes it so exciting also often stings. Over the past 24 hours, leverage traders caught on the wrong side of rapid market fluctuations have felt this sting.
584K Crypto Traders See Massive Losses
Nearly 584,000 crypto speculators have faced liquidations in the past 24 hours, with the total figure coming in at a staggering $1.76 billion, per CoinGlass data at the time of writing. According to the data, long traders witnessed the impact the most, as long positions amounted to $1.58 billion in liquidations.
The data further shows that small-cap crypto traders have suffered the biggest burn, with over $560 million in losses, followed by Ethereum traders, who have lost $250 million, and Bitcoin traders, with $190 million in losses.
A Bitcoin Flash Crash
The recent liquidations follow a broad market correction sparked by a Bitcoin flash crash. Specifically, Bitcoin lost $3,000 in value within 30 minutes. The asset dropped from over $97,000 to near the $94,000 price point before quickly rebounding to the $97,000 price point.
Altcoins have taken major losses in lockstep with the market leader. At the time of writing, Ethereum, XRP, Solana, and Dogecoin have posted losses of 5.88%, 12.63%, 7%, and 10.93%, respectively, in the past 24 hours.
The bloodbath is likely attributable to the crypto market’s correlation with tech stocks. These equities suffered on Monday, December 9, as reports that China was probing computer chip giant Nvidia sparked broad risk-off sentiments.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
