he Bitcoin price came under severe selling pressure on December 5th which erased over $13,000 dollars from its previous all-time high of $103,679. This caused numerous financial impacts globally in cryptocurrency markets surrounding the world in the blink of an eye.
Liquidation Tsunami
Leveraged positions worth $885.61 million were forced to be closed affecting 202,956 traders globally. Amongst the liquidations, long-position traders bore the brunt of it with $640.83 million lost-72.4% of the total market loss.
Widespread Market Impact
But following this news, not only Bitcoin, but several cryptocurrencies also experienced a high level of price fluctuation. As much as bitcoin and others suffered big losses, Ethereum, XRP, Dogecoin and Solana also suffered heavy liquidations showing that the cryptocurrency markets are strongly correlated.
Trading Dynamics
The largest single liquidation occurred on OKX when an $18,630,000 BTC-USDT swap was suddenly exited. Thus, in the reported one hour, $284.43 million were brought to liquidation, including 279.50 million as for the long positions.
Market Volatility
The trading price of Bitcoin remained slightly above $95,500, having shown how volatile the market can be in such a short timeframe. Many of the liquidations also show that leveraged cryptocurrency trading is quite risky.
Bitcoin's Wild Market Rollercoaster
The recent price drop of Bitcoin is an example that claims the Cryptocurrencies market is very volatile and full of risks for traders.
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