Crypto Bull Run Brakes Hard as $1.7 Billion Liquidated Overnight

Key Takeaways

• Over $1.7 billion was liquidated on Dec. 9.
• Bitcoin lost its crucial psychological level of $100,000.
• Altcoins, especially XRP, DOGE, and ADA, experienced double-digit losses.

The crypto market experienced a massive sell-off on Dec. 9, 2024, leading to over $1.7 billion in liquidations.

Bitcoin’s (BTC) decline below the critical $100,000 threshold triggered a broader crypto market collapse, affecting major altcoins.

Sharp Market Decline Drives Massive Liquidations

Bitcoin, which had been trading above $100,000, fell sharply to $94,100, while Ethereum dropped 8%, slipping below $3,800.

This downturn resulted in $168 million in short-position liquidations and a staggering $1.5 billion in long-position liquidations, according to data from Coinglass . The global crypto market cap shrank by 7.5% in the aftermath.

While Bitcoin has since shown signs of modest recovery, trading at $97,274, it remains down by more than 2% from its previous highs.

However, altcoins, especially Ripple (XRP), Dogecoin (DOGE), and Cardano (ADA) continued to struggle, each facing double-digit percentage losses.

XRP, DOGE, and ADA Lead the Decline

Among the top 10 cryptocurrencies, Ripple’s XRP led the charge in losses, falling 11%. Dogecoin followed with a 10% drop, and Cardano saw a 13% decline.

Ethereum also faced significant declines, with a 7% drop to $3,686, leading to $235 million in total liquidations, primarily in long positions.

Bitcoin’s drop below $100,000 marked a key psychological level, with the cryptocurrency sliding to $96,652.

Liquidations for Bitcoin reached $182 million, split between $140 million in long positions and $42 million in short positions.

Unsurprisingly, smaller-cap cryptocurrencies were hit hardest, with $543 million in long positions liquidated compared to just $21 million in short positions.

Uncertain Causes Behind the Drop

While the exact cause of the sell-off remains unclear, analysts point to several possible factors, including the introduction of Google’s new quantum computing chip, Willow, and rumors surrounding significant Bitcoin transactions linked to Bhutan.

These developments are believed to have sparked uncertainty and contributed to the market turbulence.