Crypto Market Volatility: A Detailed Analysis
Massive Cryptocurrency Liquidations in 24 Hours
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Over the past 24 hours, the cryptocurrency market witnessed a substantial liquidation event amounting to $1.12 billion. A significant portion of this, about $961.92 million, originated from long positions, while short positions contributed $162.61 million to the total. These statistics were sourced from Coinglass, as reported by Finbold.
Bitcoin and Ethereum Face Major Losses
Bitcoin (BTC) was hit hardest, with liquidations reaching a staggering $445.25 million. Ethereum (ETH) was not far behind, with $230.49 million erased in the same timeframe. This highlights the ongoing volatility and risk in the cryptocurrency market.
Record-Breaking Liquidations and Trades
In total, 213,250 trades were liquidated, with the largest single order occurring on Hyperliquid, valued at $21.42 million. This underscores the scale and intensity of the market fluctuations experienced recently.
Cryptocurrency Market on a Roller-Coaster Ride
The recent downturn in the crypto market can be largely attributed to a speech by Federal Reserve Chair Jerome Powell. His remarks tempered expectations for a potential interest rate cut in December, contributing to market uncertainty.
“There were strongly differing views about how to proceed in December. A further reduction in the policy rate at the December meeting is not a foregone conclusion,” Powell stated.
Impact of U.S.-China Trade Developments
The wave of liquidations also coincided with positive news regarding U.S.-China trade relations. On Thursday, U.S. President Donald Trump and Chinese President Xi Jinping agreed to halt further trade escalations, resulting in a one-year truce.
Following these developments, Bitcoin experienced a decline of up to 3.8% on Thursday, trading as low as $108,572. This marked a reversal of the upward momentum seen in the previous week’s brief rally.
Broader Market Reactions
In tandem with Bitcoin’s decline, the larger cryptocurrency market also faced downturns. Ethereum decreased by 3.6% to $3,871, Solana (SOL) edged 1.4% lower to $191.95, and XRP fell by 4.1% to $2.51.
Spot Bitcoin ETFs Face Challenges
Spot Bitcoin ETFs struggled as well, recording daily outflows of 4,238 BTC, valued at approximately $471 million. This trend reflects the broader market’s struggles amidst ongoing volatility and investor uncertainty.
