The cryptocurrency derivatives market faced a significant downturn, with total crypto liquidations reaching $1.72 billion (approximately Rp27 trillion) within just 24 hours. This massive liquidation wave followed Bitcoin’s drop from its critical level of $100,000.
According to data from CoinGlass on Tuesday (Dec 10), over 571,000 traders were impacted, with long positions taking the biggest hit at $1.55 billion, while short positions saw $169 million in liquidations. This marks the largest liquidation event since late 2021, during the fallout of the FTX collapse.
The majority of combined altcoins suffered the highest liquidation levels, surpassing $564 million. Ethereum (ETH) and Bitcoin (BTC) accounted for $242 million and $184.71 million, respectively.
This event follows a similar trend just days earlier, when total crypto liquidations reached $1.1 billion (Rp16 trillion) on Dec 6, 2024—the largest figure since December 2021. The phenomenon, often termed as a “leverage flush,” occurs when targeted sell-offs trigger stop-loss orders and liquidations at critical price levels.
Bitcoin recently reached an all-time high of $103,900 on Dec 5, fueled by a prolonged price rally following Donald Trump’s election as the 47th President of the United State.
Triggered by Large-Scale Sell-Off
Multiple factors contributed to the market pressure that led to this mass liquidation. SpotOnChain data on Sunday (Dec 9) revealed that the Royal Government of Bhutan transferred 402 Bitcoin worth $39.56 million to QCP Capital, a digital asset trading firm. This substantial sale significantly impacted Bitcoin’s price movement.
“Since late October, the Royal Government of Bhutan has sold a total of 1,696 BTC worth $139 million at an average price of $81,999 via Binance and QCP Capital,” the report noted. Bhutan still holds 11,400 BTC valued at approximately $1.12 billion.
Additionally, SpotOnChain highlighted that Justin Sun, founder of the Tron network, transferred 29,920 Ethereum (ETH) worth $119.7 million to HTX on Dec 8, likely initiating a sell-off after ETH’s price peaked at $4,000. Earlier on Dec 5, Sun had moved 20,000 ETH worth $76.3 million to HTX when ETH surpassed $3,800.
Crypto Market Remains in the Red
At the time of writing, most cryptocurrencies are still experiencing significant losses. Bitcoin is trading at $96,230, reflecting a 3% drop.
Ethereum has fallen from $4,000 to $3,660, with a 7% decline. Meanwhile, altcoins such as XRP (-16%), Solana (-9%), Dogecoin (-14%), and Cardano (-17%) are among the most affected.
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