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The digital asset market has faced one of its most substantial crypto liquidation events in recent weeks, driven by Bitcoin’s (BTC) sharp downturn. Data from Coinglass reveals that a minimum of 377 traders were severely impacted during the market turbulence, highlighting the risks tied to over-leveraged positions across the board. Today, the crypto liquidations exceeded a whopping $1 billion.
Crypto Liquidations: Bitcoin at the Forefront
Over the last 24 hours, the crypto market saw liquidations amounting to $1.04 billion. Bitcoin alone accounted for $249.20 million, marking it as the primary contributor to the losses. Long positions on Bitcoin experienced liquidations of $191.57 million, while $57.63 million was liquidated from short positions.
Ethereum (ETH) also faced significant selloffs, though to a lesser extent, with $211.95 million in total liquidations. Short traders in Ethereum saw $26.58 million liquidated while the long liquidations amounted to $185.37 million.
The ripple effects of Bitcoin’s price movements were evident across several major altcoins. Ripple’s XRP recorded $40.63 million in liquidations, Solana accounted for $39.41 million, Dogecoin (DOGE) saw $61.21 million wiped out, and Cardano (ADA) registered $9.92 million in liquidations, according to Coinglass data.
Bitcoin Price Action As Crypto Market Declines
Bitcoin price, which recently achieved a record high of $108,000 earlier in the week, fell by 3.53% within a 24-hour period. Its trading range during this time spanned from $102,748.15 at the high end to $95,587.68 at the low.
Ethereum price followed suit, dropping 7.03% to $3,421.50 on Thursday. Among other significant moves, XRP slid 3.46% to $2.27, while Solana fell by 8.76% to $191.48.
The broader market’s decline coincided with the Federal Reserve’s announcement of a 0.25% interest rate reduction on December 18. Shortly after the announcement, Federal Reserve Chairman Jerome Powell issued a statement that many interpreted as unfavorable for Bitcoin.
When addressing potential Bitcoin reserves, Powell clarified that the U.S. was not planning to amend laws to allow the Federal Reserve to hold Bitcoin as a strategic reserve asset. This comment seemingly contributed to market uncertainty, amplifying selloffs across the sector.