Start of a Year Full of Challenges Liquidating 99,000 Traders, Losing $225 Million in the Crypto Market!

The new year started with a $225 million crypto market liquidation. The crypto market opened the new year at a slow pace, resulting in more than 99,000 traders being liquidated with a total loss of around $225 million in the past day.

Based on data from Coinglass, traders who placed bets on price increases had to bear the largest losses, amounting to around $135.70 million in liquidations. On the other hand, traders with a bearish (short) view suffered losses of $87.81 million during the reporting period.

What was surprising was that the lesser-known TRB Tellor Tributes token accounted for a large portion of the total losses. Traders holding positions in these digital assets accounted for more than 32%, or about $73.14 million, of total liquidations.

TRB's liquidation occurred simultaneously with a decline in value of 36.2%. The digital asset rose quickly from $200 to over $600 before suddenly falling to around $187 at the time of writing. The reason why TRB prices experienced high volatility during the reporting period remains unclear.

Meanwhile, traders who placed bets on the prices of the two largest digital assets by market capitalization, namely Bitcoin and Ethereum, each experienced losses of $22.96 million.

During the reporting period, Bitcoin prices moved relatively flat, rising just 0.51% to $42,758. This price performance is surprising considering market optimism surrounding the possible approval of a spot exchange-traded fund (ETF) in the United States. There are reports that the Securities and Exchange Commission (SEC) may start approving some of these ETF applications starting January 2 and 3.

Meanwhile, Ethereum price fell 0.36% to $2,306 at the time of writing.

Speculators on other major cryptocurrencies such as Solana, ORDI, and XRP also suffered losses of $7.98 million, $7.58 million, and $1.1 million, respectively.

Crypto traders using the struggling Binance platform accounted for nearly 50% of the total market losses. Binance users lost a total of $94.76 million over the past day, with the largest single liquidation order being a $3.07 million long position on Ether.

Traders using OKEx experienced $76.6 million in liquidations, while those using ByBit and HTX cumulatively lost nearly $50 million.