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.