Crypto traders experienced a massive wave of liquidations on November 25, with $553 million in positions being forcibly closed after Bitcoin (BTC) saw a sharp decline to $92,000. The market turmoil triggered significant sell-offs, as the world’s leading cryptocurrency dropped nearly 5% in just one day.
According to data from Coinglass, long positions accounted for the majority of the liquidations, totaling $413 million as Bitcoin’s price slipped. Over the past 12 hours, traders saw $344 million in long positions liquidated, followed by another $140 million in the previous four hours. Short positions also saw significant losses, with $138 million liquidated during the same period.
Bitcoin and Ethereum (ETH) were the two main contributors to the mass liquidations. At the time of writing, Bitcoin accounted for $24 million in liquidations across both long and short positions, while Ethereum saw $11 million in long positions and $3 million in short positions.
The liquidation event impacted 169,879 traders, with the Binance exchange reporting the highest number of liquidations, totaling $4.67 million in BTC/USDT positions.
The broader cryptocurrency market also felt the effects, with the total market capitalization dropping by nearly 3%, falling to $3.23 trillion. Trading volumes remained high, hovering around $240 billion. Smaller altcoins with lower market capitalizations were hit especially hard, with about $100 million in liquidations from this sector alone.
While the sharp pullback was significant, it is viewed as a normal market correction following Bitcoin’s impressive rally in the previous month. Despite the liquidation wave, Bitcoin continues to dominate the crypto market, holding a 57.4% market share, according to CoinMarketCap data.
The current market sentiment remains highly bullish, with the Crypto Fear & Greed Index at 82, indicating widespread greed among investors. Many analysts believe the correction could set the stage for a continued bullish momentum, fueled by promising macroeconomic conditions in the United States that could drive further confidence in the crypto market.
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