Bitcoin Crash Sparks $1.57 Billion Liquidation Frenzy in 24 Hours

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10.12.2024 53 times read 0 Comments

Bitcoin’s Drop Triggers $1.57 Billion in Liquidations

The cryptocurrency market experienced a significant shake-up as Bitcoin's value plummeted below the $37,000 mark, leading to an astonishing $1.57 billion in liquidations within just 24 hours. According to CryptoSlate, this marks the highest liquidation event since September 2021. The majority of these were long positions amounting to approximately $1.39 billion, indicating that traders had been overly optimistic about Bitcoin surpassing the critical threshold of $40,000 soon.

This dramatic downturn was exacerbated by leveraged positions concentrated around the crucial support level at $37,700; once breached, it triggered cascading sell-offs and further price declines for BTC. Despite this turmoil among longs, short positions remained relatively stable with minimal activity noted during higher price points.

XRP Plunges Below $0.20 Mark as Bitcoin Tumbles Again

In another blow to crypto investors' confidence, following recent highs last week when XRP surged past its seven-year peak reaching up towards nearly three dollars ($3), Decrypt reports how rapidly things changed after Tuesday saw prices fall sharply back down under twenty cents per coin amid broader asset dips including those affecting other major players like Ethereum and Solana too!

This decline comes despite earlier optimism surrounding regulatory clarity prospects ahead due largely thanks perhaps in part to increased interest in digital currencies, which helped fuel initial gains before volatility took hold again, causing losses across board, especially impacting Ripple-linked tokens hardest hit dropping almost thirty-three percent (33%) from their previous high point achieved only days prior, now sitting closer to 19 cents ($0.19).

Here's Why Crypto Market Lost $1.6 Billion in Hours

A sudden wave swept through digital currency ecosystems, resulting in a massive combined loss totaling close to $1.6 billion as detailed by Investing.com analysis. This event marks the biggest single-day sell-off seen in recent months, with Coinbase triggering a chain reaction of stop-loss orders being activated throughout the entire sector. This drove funding fees skyward alongside open interest levels soaring to new heights, while ETH emerged as a safe haven alternative amidst chaos given smaller drawdowns compared to its larger counterpart, BTC, which experienced a 12% drop touching lows near previously cited figures.

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