Crypto liquidations hit $1B as traders were ‘unprepared for bad news’

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Bitget Academy2024/12/20 06:06

By:Bitget Academy

More than $1 billion has been liquidated in the crypto market over the past 24 hours as market participants were caught off guard by the strong momentum for crypto over the past 30 days.

However, the analyst suggests the market downturn may be short-lived. “We’ve had such a bullish narrative over the last month that the market was completely unprepared for bad news. Now we’re seeing indiscriminate selling,” Swyftx lead analyst Pav Hundal. “It’s not the start of the Christmas run-in we’d hoped for. But it looks like short-term angst,” Hundal said.

On Dec. 19, approximately $1.02 billion was liquidated from the crypto market within 24 hours, of which around $856.66 million was long positions, according to CoinGlass data. Over the same period, Bitcoin fell 3.36%, back down below the $100,000 psychological level. At the time of publication, Bitcoin is trading at $97,350, according to data from CoinMarketCap.

This isn’t the first time this month that Bitcoin’s drop below $100,000 has wiped out a significant amount of long positions. However, Hundal remains optimistic that a “Santa rally” is still on the cards, something that the market has been expecting, while Real Vision chief crypto analyst Jamie Coutts said in a Dec. 20 X post that a buying opportunity could be incoming. Crypto analyst Caleb Franzen described the volatility as typical behavior during a bull run, and there’s no cause for concern. Franzen said in a Dec. 19 X post that there were nine Bitcoin pullbacks during the last bull run over 16 months, all of which were followed by higher highs.

Source: CoinTelegraph

Futures Market Updates

BTC nosedived to $97K caused more long positions to be liquidated.

Bitcoin Futures Updates

Total BTC Open Interest: $64.75B (-3.87%)

BTC Volume (24H): $157.70B (+5.69%)

BTC Liquidations (24H): $164.52M (Long)/$51.51M (Short)

Long/Short Ratio: 49.09%/50.91%

Funding Rate: 0.0066%

Ether Futures Updates

Total ETH Open Interest: $25.18B (-6.66%)

ETH Volume (24H): $90.20B (+19.88%)

ETH Liquidations (24H): $157.16M (Long)/$25.68M (Short)

Long/Short Ratio: 48.05%/51.95%

Funding Rate: 0.0081%

Top 3 OI Surges

HYPE: $25.66M (+7,098.02%)

CHEEMS: $86.04K (+1,126.53%)

USDT: $91.17K (+63.83%)

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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