Crypto Liquidation Hits $1.1 Billion, Bitcoin, Ethereum, and XRP Nosedive

After an extended selloff streak, the crypto market witnessed one of the most intense liquidations of the past month, with Bitcoin (BTC) leading the losses. According to data from CoinGlass, at least 377 traders have suffered the bloodbath in the market. Overall, the market outlook showcases how over-leveraged the market is.

Bitcoin Leads Altcoins In Crypto Liquidation

According to market data, the actual liquidation in 24 hours was $1.17 billion. Bitcoin recorded $250.47 million, with long traders losing $191.82 million and short traders liquidating $58.65 million. Ethereum recorded a milder selloff, with $186 million; short traders also lost $22.02 million.

Meanwhile, the correlation that crypto assets like XRP, Solana, Dogecoin, and Cardano share with Bitcoin also forced intense liquidations across the board. XRP has lost $41.29 million, Solana sheds $38.38 million, Dogecoin lost $59.32 million and Cardano dropped $97.6 million.

In a week that BTC price hit $108,000 All-Time High (ATH), the coin has dropped by more than 4.76% in 24 hours. Effectively, Bitcoin price has now traded at a very close range from a high of $102,748.15 to as low as $95,587.68.

Ethereum is down 9.47% to $3,363.43, XRP slumped 6.36% to $2.09 and Solana fell by 8.76% to $191.48. While the exact reason for the current market rout remain unknown, the selloff dates back the Fed’s 0.25% interest rate cut from December 18.

Shortly after the rate cut announcement, Federal Research Chairman Jerome Powell shared a bearish statement on Bitcoin. When asked about the Bitcoin strategic reserve plans, Powell said the country is not planning to change its laws. He said the Fed is not permitted to keep the asset as reserve. The broader market reacted negatively to this speech, fueling the sustained drawdown that led to the crypto liquidation now.

Where is the Market Heading?

As showcased on CoinGlass, the single largest crypto liquidation comes in at $15.8 million and took place on Binance Exchange. This relatively low value shows the market is spread evenly among most retail leverage traders.

However, top market analyst Ali Martinez has spotlighted an unusual trend from Bitcoin whales. These investors have accumulated more than $1 billion during the latest market dip.

Whales bought over $1 billion worth of #Bitcoin $BTC during the recent market dip! pic.twitter.com/dfYl8QC41Z

— Ali (@ali_charts) December 19, 2024

Among the latest buyers include MARA Holdings. The Bitcoin mining firm acquired 15,574 BTC for $1.53 billion as reported earlier by Coingape. If these large buyups continues, it might trigger a broad market recovery.