Coinspeaker Crypto Liquidation Hits $389M as Altcoins Retest New Highs
In 24 hours, over $389 million have left several crypto exchanges in different digital assets through liquidation. According to CoinGlass, 116,183 traders were liquidated, and their total liquidations came in at $389.10 million. Noteworthy, the largest single liquidation is worth $10.63 million, spotted on Binance.
Crypto Liquidation Soar as Short Traders Lose Bitcoin Bet
Bitcoin BTC $98 482 24h volatility: 0.8% Market cap: $1.95 T Vol. 24h: $110.44 B rose to $99,000 this week, hitting a new All-Time High (ATH). At the time of writing, BTC price topped $99,297.86, a 2.31% increase in the last 24 hours.
Ethereum ETH $3 328 24h volatility: 6.1% Market cap: $401.22 B Vol. 24h: $57.29 B , Solana SOL $257.6 24h volatility: 6.2% Market cap: $122.60 B Vol. 24h: $14.73 B , XRP XRP $1.41 24h volatility: 25.0% Market cap: $80.00 B Vol. 24h: $19.84 B , and other altcoins have also retested new price levels. These price gains may have surprised traders, as short traders suffered the most liquidation on their holdings.
In the 24-hour chart, $114.66 million was liquidated from Bitcoin, making it the most liquidated asset. Of this figure, $80.90 million was for short traders, while the remaining $76.71 million came from long traders. For Ethereum, $76.71 million was liquidated, with $47.81 million from short traders. Other altcoins not featured in the Coinglass liquidation heatmap also registered up to $34.1 million in losses.
For context, crypto traders who bet on a downward trend for Bitcoin are facing liquidation at the moment. The coin has defied many odds to soar significantly. In seven days, BTC recorded a 12.33% increase in price while its market cap climbed to $1.96 trillion. Those who overshot their bets, assuming that Bitcoin will reach a higher level, are included as they also count their losses.
Notably, the crypto ecosystem anticipated this kind of spike in prices post-election. This comes from Donald Trump’s campaign pledges to integrate cryptocurrencies into the American financial system. Additionally, he plans to create a Bitcoin strategic reserve.
“It will be the policy of my administration to keep 100% of all the Bitcoin the US government currently holds or acquires,” Trump said.
The elected president of the United States also intends to end the Securities and Exchange Commission’s (SEC) perceived enforcement against crypto firms. One of the plans is to oust Gary Gensler, the agency’s chairman. As it stands, more crypto exchanges are calling out the SEC’s overreach in the sector.
US States Sues SEC for Crypto Overreach
Last week, 18 states in the United States filed to sue Gensler along with the agency and other Commissioners, citing ‘unconstitutional overreach’ of the $3 trillion crypto market. It was filed in collaboration with crypto advocacy group DeFi Education Fund.
Through the filing, they demanded sound regulatory policy in the Decentralized Finance (DeFi) sector.
Based on their argument, the US SEC’s broader crackdown on the crypto industry violates the fundamental principles of federalism. As a result, the action is regarded as absolutely unconstitutional. Furthermore, the lawsuit stated that government agencies need to operate within their constitutionally defined roles.
Solutions may come to these grievances once Trump finally assumes office. If properly piloted, the crypto landscape, including asset prices, could see more spikes with more liquidation imminent.
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Crypto Liquidation Hits $389M as Altcoins Retest New Highs
