Coinglass’ data shows that the amount of crypto-liquidations has reached $1.4 Billion in just 24 hours.
Leveraged traders with long positions were left reeling after a sharp pullback in Bitcoin's price—and harsher declines among altcoins.
The Bitcoin price sank to lows of $92,000 on Friday, meaning the world's biggest cryptocurrency is now 13.4% off all-time highs set just three days ago.
The situation was even more dire amongst digital assets that had smaller market capitalizations.
Ethereum The stock price was at one time down 16% within a period of 24 hours. The XRP currency is a cryptocurrency that can be used to buy and sell goods. plunging 18% and Dogecoin The same period saw a 26% increase.
One trader in the Wealth Group crypto Discord community said they believe—when recent liquidations are combined—"we have probably seen the largest liquidation event in crypto history over the past few weeks."
Over on Wall Street, data from SoSoValue shows $680 million flowed out of spot Bitcoin ETFs on Thursday—a record figure not seen since these products launched back in January.
When Federal Reserve Chair Jerome Powell said that interest rates may be cut less often in 2025 by the U.S. Central Bank than initially thought, the pullback began in crypto markets.
Plenty of pain was also inflicted on the stock market, with declines across the S&P 500 and tech-heavy Nasdaq 100 in New York, and London's FTSE.
The institutional and retail crypto investors will find it difficult to accept a double-digit drop in such short time. Some traders insist that this is just a temporary dip on the road to record-breaking highs in 2019.
Bitcoiners say there’s still plenty to be optimistic about, even though Donald Trump, a pro-crypto president, is set to take office in the White House next year. ETFs continue to purchase BTC faster than they can mine it.
Stacy Elliott edited this article.
