- According to CoinGlass, over $1.2 billion worth of crypto has been liquidated in the past 24 hours, with long positions accounting for the majority ($1.07 billion).
- Major altcoins like XRP, Dogecoin (DOGE), and Cardano (ADA) have recorded double-digit losses, with XRP plunging by 10%, DOGE by 19.4%, and ADA by 15.7%.
- The crypto market turned bearish after the US Federal Reserve indicated it would reduce easing in 2025, with only two rate cuts expected near year, impacting risk assets.
In a shocking turn of events for the cryptocurrency market, major altcoins such as XRP and Cardano (ADA) experienced staggering losses, leading to a $1.2 billion liquidation bloodbath.
The Massive Liquidation in Detail
The extent of the liquidation is quite astounding, with over $1.2 billion worth of crypto being liquidated in just 24 hours, according to data from CoinGlass. Unsurprisingly, long positions account for the majority of the wipeout, totaling a staggering $1.07 billion. The largest single liquidation order occurred on Binance, where one unfortunate trader lost nearly $16 million.
The State of Major Altcoins
The impact of this financial turmoil is not limited to Bitcoin. Major altcoins are also bearing the brunt, with the Ripple-linked XRP token suffering a dramatic 10% plunge. Dogecoin (DOGE) and Cardano (ADA) have also recorded double-digit losses, with a drop of 19.4% and 15.7% respectively.
The Market Reaction and External Factors
The cryptocurrency market took a bearish turn following the US Federal Reserve’s announcement that it would reduce easing in 2025 after implementing a “hawkish” rate cut. This move has led to an expectation of just two rate cuts in the coming year, dealing a significant blow to risk assets. This financial pressure is not exclusive to the crypto market; US equities have also come under strain, with the Dow recently recording its longest losing streak in 50 years.
Conclusion
The recent events have underscored the volatile nature of the crypto market and the potential risks involved. With significant losses across major altcoins, the coming days will be crucial in determining the market’s resilience and potential for recovery.
