YEREVAN (CoinChapter.com) — The crypto market saw over $1 billion in liquidations within 24 hours on Dec. 19, with CoinGlass data revealing that around $856.7 million of these liquidations were long positions. Swyftx lead analyst Pav Hundal stated that the market was unprepared for the sudden negative momentum. He referred to the sell-off as “indiscriminate selling” after a month of bullish trends.
Bitcoin Drops Below $100,000
Bitcoin’s price fell 3.36%, trading at $97,350 as of publication, according to CoinMarketCap. The drop pushed the cryptocurrency below the $100,000 psychological level. This isn’t the first time Bitcoin’s decline has caused substantial liquidations. On Dec. 5, Bitcoin’s price dropped by 5.47% to under $93,000, liquidating $300 million within minutes. More recently, on Dec. 10, over $1.7 billion in leveraged positions were wiped out during another sharp market downturn.
Bitcoin was trading at $97,350 at the time of publication. Source: CoinMarketCap
CoinGlass confirmed that the Dec. 19 liquidation marked the largest long liquidation in this cycle. Bitcoin maximalist Fred Krueger commented in a Dec. 19 X post that leveraging Bitcoin trades often leads to significant losses.
$856.7 in long positions was liquidated from the crypto market over the past 24 hours. Source: CoinGlass Analysts Observe Volatility in Crypto Markets
Hundal described the market activity as “short-term angst” following an extended bullish narrative. He noted that the market could still see positive trends later in the year. Other analysts shared similar observations. Jamie Coutts, a chief crypto analyst at Real Vision, suggested in a Dec. 20 X post that the recent dip might present a buying opportunity.
Bitcoin Macro Liquidity Dashboard. Source: X
Crypto analyst Caleb Franzen highlighted that such pullbacks are not uncommon during bull runs. In a Dec. 19 X post, he noted that nine similar Bitcoin pullbacks occurred during the last bull cycle over a span of 16 months. Franzen remarked that each pullback was followed by higher price levels.
Bitcoin Pullbacks and Recovery Trends. Source: X Market Prepares for Policy Changes
As the Trump administration prepares to take office on Jan. 20, 2025, the crypto market has begun to factor in potential policy shifts. Speculations about a possible U.S. Bitcoin strategic reserve under the new administration are influencing market dynamics. Hundal noted that market volatility might continue as traders adjust their positions. He added that clarity on policy direction would likely emerge after the new administration takes charge.
