Key Points
- Cryptocurrency market experienced a major liquidation event, wiping out nearly $500 million over the weekend.
- Bitcoin’s price dip and market volatility triggered the liquidations, affecting many traders.
A significant liquidation event occurred over the weekend in the cryptocurrency market, with close to $500 million wiped out, according to data from Coinglass.
This event followed the recent price movements of Bitcoin (BTC), which reached an all-time high of over $99,500 last week and then dropped to as low as $96,000 on November 24. This sharp drop, combined with market volatility, triggered extensive liquidations.
Understanding the Liquidations
An analysis of Coinglass data revealed that 188,666 traders faced liquidations over the past 24 hours, with total losses amounting to $495.74 million.
Long positions were hit hardest, accounting for $366.72 million of the losses, while short positions contributed $128.99 million to the overall figure. The largest single liquidation order happened on Binance, involving a BTC/USDT trade that resulted in a $13.4 million loss.
Binance also led in total liquidations, with a massive $215.90 million cleared. Other major exchanges followed, including OKX with $119.57 million, Bybit at $115.61 million, and HTX, which recorded liquidations worth $27.84 million.
Impacted Cryptocurrencies
Bitcoin accounted for the highest liquidations among cryptocurrencies, with $79.06 million wiped out, followed by Ethereum (ETH) at $43.57 million.
Dogecoin (DOGE), Ripple (XRP), and Sandbox (SAND) also experienced significant liquidations, with $32.3 million, $30.6 million, and $24.97 million, respectively. Interestingly, SAND and Bonk (BONK) saw more short liquidations than longs, against the broader trend of long-liquidation dominance.
With all top 10 coins registering losses, the global cryptocurrency market cap dropped to $3.35 trillion, reflecting a 0.74% decrease over the past 24 hours according to CoinMarketCap.
Despite the broader market downturn, some sectors defied the trend. The Gaming Finance (GameFi) market cap rose to $24.4 billion, marking a 10% increase over the last day. Similarly, the Decentralized Science (DeSci) market cap grew by 6.3% to $1.22 billion. The Metaverse sector also saw significant growth, with a 14% surge pushing its market cap to $14.6 billion. Meanwhile, Play-to-Earn (P2E) tokens gained traction, with their market cap jumping 17.4% to $14.4 billion.
The crypto community is closely watching to see if Bitcoin can regain its upward momentum and break past the $100,000 barrier.
