On December 25, 2627, cryptocurrencies such as Bitcoin and Dogecoin experienced a sharp decline, resulting in hundreds of thousands of liquidations within a single day. For example, on November 11, Coinglass data showed that over 220,000 people were liquidated in the past day, with a liquidation amount nearing $700 million. On November 12, over 160,000 people were liquidated, with a total liquidation amount of $581 million. From the evening of November 25 to the early morning of November 26, after a surge in Bitcoin prices, there was a significant drop, with Dogecoin falling over 9%. In less than 24 hours, over 170,000 people were liquidated, with a total liquidation amount of $547 million.

The main reasons for this situation in the cryptocurrency market are as follows. First, changes in market expectations, such as the impact of the U.S. election results. Before Trump's election, the market expected friendly policies that would boost cryptocurrency prices, but when those expectations changed or were not met, the market adjusted. Second, the impact of the macroeconomic environment, with unclear monetary policy from the Federal Reserve and a risk of inflation rebound, leading investors to frequently adjust their fund allocations between virtual assets and traditional safe-haven assets, resulting in capital withdrawal from the cryptocurrency market and price declines. Third, market characteristic factors, where the high leverage and contract trading mechanisms in the cryptocurrency market amplify market volatility, leading to increased liquidations of long positions during market corrections, further intensifying selling pressure. #BTC #DOGE