 Bitcoin sees most liquidations since 2021 as ‘crazy’ reset wipes $1.6B 
2024-12-10

Bitcoin BTCUSD liquidations have hit three-year records as a fresh BTC price dump takes the market to a popular target.
New research from X account Ltrd reveals “crazy” trader behavior while the total crypto market cap shed up to 11% on Dec. 9.
Analysis: Coinbase traders sold Bitcoin “aggressively”
Bitcoin fulfilled expectations during the week’s first Wall Street trading session, dipping to near $94,000.
This constituted around 50% of a large downside wick from Dec. 5 — one which had created a market “inefficiency” that had a 96% chance of being filled, analysis said.
While this came true, the liquidations that accompanied the price drop looked little like last week’s cascade.
“Today’s dump resulted in the biggest liquidation since 2021,” Ltrd summarized.
Analyzing exchange movements, Ltrd revealed that largest United States trading platform Coinbase was pivotal in sparking downward momentum.
“We observed something crazy—Coinbase traders began selling aggressively almost an hour before the mega dump,” it continued.

An accompanying chart compares cumulative volume delta (CVD) data for both Coinbase and largest global exchange Binance.
“Certainly unusual”
Data from monitoring resource CoinGlass calculates total cross-crypto liquidations at $1.6 billion for the 24 hours to the time of writing on Dec. 10.
Of these, BTC longs suffered less than Ether ETHUSD longs, with $142 million versus $208 million liquidated, respectively.
“The biggest long liquidation of this bull cycle so far,” CoinGlass confirmed to X followers.
While reactions lamented “liquidation gore” for altcoins, more optimistic takes see the chance for a return to more stable market conditions.
“With that leverage wiped out, the market has reset, with Altcoins flipping key levels into support. Good stuff,” popular trader Jelle wrote in part of his latest X commentary.
Ltrd meanwhile drew attention to the “unusual” nature of the cascade, with altcoins including XRP XRPUSD under the microscope.
“Something absolutely strange happened. On a large, relatively mature market, we witnessed a cascade of big sell orders that caused the market to drop by over 5%,” the analysis states. 
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