The cryptocurrency market has always been a domain marked by rapid fluctuations and unforeseen shifts. The election of Donald Trump as President of the United States once ushered in a wave of positive momentum within this sector. Nevertheless, the current climate seems to be cooling off, leading to substantial financial liquidations amounting to hundreds of millions of dollars.
$650 Million Crypto Liquidation
On November 14, 2024, the cryptocurrency market witnessed pronounced volatility, culminating in the liquidation of approximately $650 million in crypto assets. This event was tracked by CoinGlass, a renowned on-chain analytics firm. The report highlighted that close to 200,000 traders were impacted by these liquidations over a 24-hour period. During this tumultuous time, those betting on price increases, or bulls, bore the brunt of the losses. Data indicates that bulls suffered liquidations totaling nearly $435 million in long positions, whereas bears, those betting on price decreases, faced liquidations of $190 million.
Interestingly, the most significant individual liquidation transpired on the Binance exchange, involving the BTCUSDT pair, and was valued at $12.39 million. Traders who have invested in popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) have encountered substantial financial setbacks.
Why Is the Crypto Market Falling?
The recent downturn in the crypto market can be attributed to a combination of factors, primarily the decline in prices of major assets and a significant sell-off of Bitcoin by miners. Over the past 24 hours, major cryptocurrencies have seen notable price drops: Bitcoin (BTC) fell by 4%, Ethereum (ETH) by 4.2%, Solana (SOL) by 2.6%, and Dogecoin (DOGE) by 3.65%.
In a revealing move, Bitcoin miners offloaded approximately 25,000 BTC, valued at $2.25 billion, as the price hovered around the $93,400 mark. This information, provided by CryptoQuant, an on-chain analytics firm, underscores the largest miner sell-off since May 2024. Such activity suggests an increase in selling pressure, which could foreshadow further price declines in the near future.
The joint impact of this substantial sell-off by miners and the concurrent price drop in key assets is likely the driving force behind the significant liquidations experienced by traders. As the market continues to evolve, investors and traders alike must remain vigilant, adapting their strategies to navigate these turbulent waters.
