Cryptocurrency bloodbath: BTC plunges to 94K, 1.5BN liquidated
2024-12-10

Monday was a hard and black day for the cryptocurrency market, with the crypto economy shrinking 6.31% in just 24 hours and $1.5 billion worth of crypto derivatives positions wiped out. Bitcoin (BTC) hovered between $96,800 and $97,000, though it briefly plunged to $94,249, sparking turmoil.
Bitcoin’s flash crash triggers altcoin avalanche: Double-digit losses hit the crypto economy
Bitcoin suddenly plunged after hovering at $97,748. In just a few moments, the price fell to $94,249, making it difficult for Bitcoin to regain its footing in the  GETTEX:97K  region. The ripple effect of this price drop rattled the broader crypto market, with many other assets hit harder.
When the dust settled, Bitcoin (BTC) was down 3.5%, Ethereum (ETH) was down 7%, and XRP was down more than 11%. Solana (SOL) was down 6.5%, Binance Coin (BNB) was down 7.48%, and Dogecoin (DOGE) was down 8.92%. Losses piled up across the market, with most digital assets suffering double-digit declines. Tokens like PNUT and DYDX plunged 22% and 21%, respectively, while GALA lost more than 20% of its value in a single day.

One thing that cannot be denied in this chaos is that the crypto derivatives market has been hit hard. Data from coinglass.com reveals that $1.51 billion in positions (both long and short) were liquidated, with $138 million in long bets. The debacle affected trading sessions across 514,384 traders, with altcoins bearing the brunt of the losses, accounting for nearly two-thirds of the liquidations.

The recent market turmoil has highlighted the fragility of crypto valuations, where rapid price swings can quickly wipe out gains and exacerbate losses for traders. With altcoins bearing the brunt of the liquidations, the event underscores the importance of risk management strategies in the derivatives market. It serves as a reminder to traders that the volatility of digital assets remains a significant challenge.
This broad-based decline is a stark reminder of the unpredictable forces in the crypto economy, especially during bull runs. With increased liquidations and weak prices, market participants face difficult questions about long-term stability and speculative risk. For now, the trauma caused by the sell-off may affect trading behavior in the next few days, emphasizing that caution is better than recklessness.
Although BTC is struggling to maintain the 97K line again, it is still not very stable. Everything is very variable, and no one knows whether there will be a third flash crash!