- CoinGlass data shows that over $534 million in crypto was liquidated in the past 24 hours, with XRP, BTC, and ETH being the largest assets affected.
- Despite the recent bullishness in the crypto market, there are fears that the US government is planning to sell off its Bitcoin trove.
- The possibility of a US Bitcoin sale lingers, with some experts warning against it, stating that the government should not sell any of its Bitcoin holdings.
The cryptocurrency market saw immense pain over the past day as heavy liquidations wiped out more than $500 million in crypto assets. Data from CoinGlass showed the carnage was widespread across major cryptocurrencies like Bitcoin, Ethereum, and XRP as well as top exchanges like Binance and OKX. The market turmoil comes despite recent bullish price action and points to lingering weakness.
Liquidity Vanishes for Top Cryptocurrencies
According to CoinGlass, liquidations totaled $534 million over the 24-hour period ending December 3, 2024. This included $181 million in short positions being closed out and $352 million in longs.
XRP saw the most bloodshed, with nearly $70 million liquidated. Bitcoin followed closely behind at over $60 million. Ethereum traders got hit hard too, losing almost $58 million. Other major casualties were Dogecoin ($32 million), Hedera ($17 million), and Solana ($14 million).
Exchanges See Massive Liquidations
Looking at exchanges, Binance led the way with $222 million in liquidations. OKX saw $134 million vanish while Bybit traders lost $124 million.
The heavy liquidations point to continuing instability and weakness in the crypto market despite recent upside. Prices have moved sideways over the past weeks after repeatedly failing to break critical resistance levels.
Broader Concerns Weigh on Market Sentiment
While the crypto market cap has increased substantially since Donald Trump’s election victory, lingering concerns are weighing on sentiment. The U.S. government has made several large transfers of Bitcoin to exchanges like Coinbase, possibly preparing to sell seized coins from the Silk Road case.
Some warn this potential government sale could cap the Bitcoin price. Others argue the government instead should hold its Bitcoin as a strategic reserve. But the uncertainty adds to the fragility seen in the latest liquidation carnage.
Conclusion
Despite bullish momentum since the U.S. midterm elections, the cryptocurrency market remains on shaky ground. Heavy liquidations across top coins and exchanges highlight lingering weakness in the market structure. With prices struggling to break key resistance levels, volatility and downside risks remain elevated.
