Crypto liquidations hit $1B as traders were ‘unprepared for bad news’
●Over $1 billion was liquidated in the crypto market in just 24 hours, catching traders off guard following strong bullish momentum over the past month. Analysts suggest the downturn could be temporary, with Swyftx lead analyst Pav Hundal attributing the sell-off to the market’s unpreparedness for negative news.
●On Dec. 19, $1.02 billion was liquidated, with $856.66 million in long positions, according to CoinGlass. Bitcoin dropped 3.36%, falling below the critical $100,000 mark to $97,350, as reported by CoinMarketCap. Similar events occurred earlier this month, with Bitcoin dips wiping out hundreds of millions in long positions, marking significant volatility.
●CoinGlass noted this cycle’s largest liquidation of long positions, while analysts remain optimistic. Fred Krueger emphasized avoiding leverage in Bitcoin trading, and Hundal hinted at a potential “Santa rally.” Real Vision’s Jamie Coutts also suggested that a buying opportunity may emerge soon.
●Crypto analyst Caleb Franzen noted that market pullbacks are normal during bull runs, highlighting nine similar Bitcoin dips during the last bull market, each followed by higher highs. He advised traders to “buckle up.”
●Looking ahead, the crypto market is expected to price in expectations tied to Trump’s upcoming presidency. Trump’s inauguration in January 2025 and plans for a US Bitcoin strategic reserve are anticipated to drive volatility as the market reacts to his administration’s direction.