Crypto liquidations reach $1.2B

Bitcoin's (BTC) rapid drop has caused one of the market's largest crypto liquidation events in recent weeks. Coinglass data shows that at least 377 traders were significantly harmed by market instability, emphasizing the hazards of heavily leveraged holdings. Crypto liquidations topped $1 billion today.

Crypto Liquidations: Bitcoin Leads

In 24 hours, crypto liquidations totaled $1.04 billion. Bitcoin was the main cause of the losses at $249.20 million. Short Bitcoin positions liquidated $57.63 million and long ones $191.57 million.

With $211.95 million in liquidations, Ethereum (ETH) also sold down. Long Ethereum liquidations totaled $185.37 million and short liquidations $26.58 million.

Bitcoin's price changes rippled across other significant cryptocurrencies. Coinglass data shows $40.63 million in liquidations for Ripple's XRP, $39.41 million for Solana, $61.21 million for Dogecoin (DOGE), and $9.92 million for Cardano (ADA).

Bitcoin Price Action As Crypto Market Falls

Bitcoin declined 3.53% in 24 hours after reaching a record high of $108,000 earlier in the week. The high was $102,748.15 and the low was $95,587.68.

Thursday's Ethereum price fell 7.03% to $3,421.50. Others were XRP falling 3.46% to $2.27 and Solana down 8.76% to $191.48.

The wider market fell when the Federal Reserve cut interest rates by 0.25% on December 18. The news was followed by a speech by Federal Reserve Chairman Jerome Powell that many saw as negative for Bitcoin.

Powell said that the U.S. will not modify legislation to enable the Federal Reserve to retain Bitcoin as a strategic reserve asset. This statement increased market anxiety and sector selloffs.

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