Despite the substantial liquidations, the crypto market showed signs of recovery. Bitcoin, which had dipped below $95,000 earlier in the week, rebounded to hover around $98,337.
While the world celebrated Christmas with joy and festivities, crypto traders navigating the volatile futures market faced a harsher reality. On December 25, the market recorded a staggering $223 million in liquidations, underscoring the risks and turbulence that remain even during the holiday season.
During the liquidation period, CoinGlass revealed that long traders bore the majority of the losses, with $153.68 million worth of cryptocurrencies erased from centralized exchanges. In comparison, short traders suffered minimal losses, amounting to $69 million.
Ethereum Traders Bear the Market Brunt
The liquidations affected major cryptocurrencies, including Bitcoin BTC $89 534 24h volatility: 1.0% Market cap: $1.79 T Vol. 24h: $35.34 B , Ethereum ETH $3 105 24h volatility: 0.4% Market cap: $374.28 B Vol. 24h: $11.34 B , and Solana SOL $131.6 24h volatility: 1.0% Market cap: $73.90 B Vol. 24h: $2.44 B . Ethereum futures contracts accounted for the largest share, with nearly $40 million in liquidations.
Bitcoin followed closely, with approximately $36 million in liquidations as traders misjudged the market’s price swings. Altcoins like SOL also experienced significant activity, registering $5 million in liquidations. Collectively, these cryptocurrencies contributed to the forceful closure of a total of $40 million in open leveraged positions.
The data highlights the persistent volatility in the crypto market, even during what is traditionally seen as a quieter trading period.
Meanwhile, the alarming liquidations indicate an ongoing struggle between bullish and bearish sentiment. Analysts suggest that the recent recovery points to underlying market strength as traders and investors adjust their positions heading into the new year.
Market Sentiment and Recovery Signals
Despite the substantial liquidations, the crypto market showed signs of recovery. Bitcoin, which had dipped below $95,000 earlier in the week, rebounded to hover around $98,337. Similarly, Ethereum regained stability above the $3,400 mark after enduring significant price fluctuations over the week.
The broader crypto market is currently valued at $3.41 trillion, with Bitcoin alone commanding more than half of the total value, holding a dominance of 57.16%.
Meanwhile, the crypto derivatives market was not the only sector to face challenges on Christmas Day. The week’s events kept institutional investors on edge, as they collectively withdrew approximately $338.38 million from Bitcoin spot exchange-traded funds (ETFs) on Wednesday.
Data from SoSoValue shows that investment funds experienced another day of significant outflows, with BlackRock’s IBIT and Fidelity Investments’ FBTC topping the list. BlackRock’s IBIT reported outflows of $188 million, while Fidelity’s FBTC saw withdrawals totaling $83 million.
Other Bitcoin ETFs, such as the ARK 21Shares Bitcoin ETF (ARKB), also witnessed substantial outflows, with investors pulling over $75 million from the fund. However, Bitwise Bitcoin ETF (BITB) bucked the trend, becoming the only fund among the 11 Bitcoin ETFs traded in the United States to record inflows. According to SoSoValue, investors purchased more than $8 million worth of BITB on Christmas Day, offering a rare positive note in an otherwise challenging period for Bitcoin ETFs.
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