Crypto Market Hit by $1.7 Billion Liquidation Surge, Small-Cap Tokens Lead the Way

December 10, 2024 11:33 AM AEDT | By Team Kalkine Media

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Crypto Market Hit by $1.7 Billion Liquidation Surge, Small-Cap Tokens Lead the Way — Image source: shutterstock

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$1.7 Billion Liquidation Surge: The crypto market experienced its largest liquidation event in over a year, wiping out $1.7 billion in a single day, with the majority of liquidations occurring in long positions.

Small-Cap Crypto Dominates: Small-cap cryptocurrencies led the liquidation wave, contributing $564 million, largely driven by long positions, while Bitcoin saw $182 million in liquidations.

Market Cap and Volume Plunge: The total market cap dropped by 6.62% to $3.44 trillion, with trading volume surging by 113% to $313 billion amidst the market chaos.

The cryptocurrency market experienced an unprecedented liquidation event on December 10, marking the largest liquidation day in over a year. Data from CoinGlass revealed a massive $1.7 billion was wiped off the market within just 24 hours of trading. This liquidation surge was primarily driven by traders in long positions, with small-cap cryptocurrencies bearing the brunt of the market sell-off.

As of the latest figures, small-cap tokens accounted for $564 million in liquidations, dominated by $543 million in long positions, and just $21 million in shorts. This widespread liquidation affected over half a million traders. Bitcoin, the flagship cryptocurrency, also saw significant liquidations totaling $182 million, with $140 million attributed to long positions and $42 million to shorts. Notably, Bitcoin's price fell below the critical $100,000 psychological level, slipping to $96,652.

Binance was the platform hardest hit by the liquidation event, with over $739 million in liquidations recorded, followed by OKX and Bybit at $422 million and $369 million, respectively. The largest individual liquidation on Binance occurred in Ethereum-USDT, totaling $19.69 million.

Alongside the liquidation shock, the crypto market cap took a substantial hit, falling by 6.62% to $3.44 trillion. However, market volume surged by 113%, reaching $313 billion, indicating heightened trading activity amid the turmoil. This surge in liquidations is seen as a continuation of a broader trend in 2024, with growing volatility and an influx of new retail investors into the market, reminiscent of previous market cycles.

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