$1.75 Billion in liquidations on the crypto market over 24 hours

According to Coinglass data, between December 9 and 10, $1.75 billion worth of positions were liquidated on the cryptocurrency market. This figure includes both long positions and other positions that were forcibly closed due to a sharp drop in prices. In total, 582 traders were affected, highlighting the scale of the situation.

Among the liquidated positions, altcoins were the main "victims." Of the $1.75 billion liquidated during this period, only $189.2 million were liquidations on BTC. The majority of the crashes occurred in lesser-capitalized cryptocurrencies, where price fluctuations are more pronounced and the risk of liquidation is significantly higher.

Catalyst for the decline

The main factor behind the crash was a sharp drop in the price of digital gold: from $101,200, the price fell to $94,150, before slightly recovering to $97,000. This triggered a chain reaction, particularly among traders using high leverage. Second-tier cryptocurrencies were also affected: the price drop among the top 10 assets ranged from 3.2% to 12.3%, excluding stablecoins, which remained stable.

Market volatility

At the time of writing, the pace of the decline in digital asset prices had slowed to 1.8%, suggesting a possible stabilization of the situation. However, market volatility remains high, and traders should be prepared for potential sharp price fluctuations.

Future predictions

Analysts' opinions are divided. The CryptoQuant platform had already warned about the potential halt in Bitcoin's rally, while well-known analyst Jamie Coutts from Real Vision suggested that the crypto asset could face a correction in two to three months.

The uncertainty in the crypto market contrasts with a record influx of capital. From December 1 to 7, $3.85 billion flowed into cryptocurrency funds.