Over the past two days, crypto liquidations reached $1.26 billion.
Bitcoin’s BTC $68 247 24h volatility: 0.7% Market cap: $1.36 T Vol. 24h: $36.24 B long-awaited surge beyond the $100,000 mark has set the market abuzz, but it also triggered significant liquidations. On December 4, over $676 million worth of perpetual futures contracts were liquidated on centralized exchanges, according to data from CoinGlass.
A total of 209,359 traders were affected, with long positions bearing the brunt of the losses. Investors who bet on Bitcoin (BTC) climbing higher accounted for $373 million in liquidations, while short positions added $305 million to the tally.
Bitcoin’s Historic Rally and Market Impact
Bitcoin’s rally began in November, fueled by renewed optimism following Donald Trump‘s re-election as US president. The news gave BTC fresh momentum, pushing it to an all-time high of $103,361. However, this sharp ascent caught many derivatives traders off guard.
CoinGlass data shows that Bitcoin alone contributed $182.5 million to the total liquidations, while Ethereum ETH $1 982 24h volatility: 0.5% Market cap: $239.30 B Vol. 24h: $18.83 B accounted for $91.6 million. Similarly, Ripple’s XRP and Solana SOL $86.32 24h volatility: 1.2% Market cap: $49.05 B Vol. 24h: $3.51 B also saw significant losses, recording $56 million and $21 million in liquidations, respectively.
Other cryptocurrencies, including Cardano ADA $0.29 24h volatility: 1.2% Market cap: $10.49 B Vol. 24h: $409.83 M and Binance Coin BNB $621.5 24h volatility: 1.4% Market cap: $84.78 B Vol. 24h: $885.66 M , experienced combined liquidations of more than $112 million. The single largest liquidation occurred on Bybit, where a trader lost $8.91 million in Bitcoin positions.
Binance led the liquidation activity among exchanges, wiping out more than $260 million in leveraged positions. OKX and Bybit followed closely, recording $163 million and $161 million in liquidations, respectively.
XRP Overthrows USDT to Reclaim Its Place
The liquidation surge also continued heightened volatility for derivatives traders. Just a day earlier, $588 million in futures contracts were liquidated, bringing the two-day total to over $1.26 billion.
Tuesday’s liquidation was led by XRP XRP $1.47 24h volatility: 0.3% Market cap: $89.60 B Vol. 24h: $2.62 B , which briefly reclaimed its spot as the third-largest cryptocurrency by market capitalization, overtaking Tether USDT $1.00 24h volatility: 0.0% Market cap: $183.69 B Vol. 24h: $62.15 B for the first time in years.
The digital asset skyrocketed 415%, peaking at $2.5 for the first time following its legal battle with the United States Securities and Exchange Commission (SEC) in 2020. However, this upward trajectory was short-lived as the token’s price later declined, leading to $69 million in liquidations – $36 million in longs and $33 million in shorts.
Dogecoin, typically known for its relative stability compared to other cryptocurrencies, experienced approximately $22.5 million in liquidations. The market downturn was partly influenced by reports of South Korean President Yoon Suk Yeol imposing martial law amid a political crisis. This unrest significantly impacted the crypto market, with South Korean exchanges like Upbit witnessing sharper price declines than their global counterparts.
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