The cryptocurrency market has been a rollercoaster of emotions and financial stakes for investors. Recently, the market witnessed a significant shift following the election of Donald Trump as President of the United States. Initially, there was a surge in market momentum, but this sentiment has now begun to wane, leading to substantial liquidations valued in the hundreds of millions of dollars.
$650 Million Crypto Liquidation
On November 14, 2024, the cryptocurrency market experienced a dramatic upheaval, causing the liquidation of crypto assets worth a staggering $650 million. This data, provided by the on-chain analytics firm CoinGlass, highlights the intense volatility that swept through the market. Over the past 24 hours, nearly 200,000 traders were impacted by these liquidations, predominantly affecting those holding long positions.
The bulls have borne the brunt of these liquidations, with approximately $435 million in long positions being liquidated. Conversely, the bears faced liquidations totaling $190 million. The most significant single liquidation occurred on Binance’s BTCUSDT pair, amounting to $12.39 million. The ripple effects of these liquidations were felt across various cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE).
Why is the Crypto Market Falling?
The recent downturn in the crypto market can be attributed to several factors, primarily the decline in asset prices and the sell-off by Bitcoin miners. Over the past 24 hours, major cryptocurrencies such as BTC, ETH, SOL, and DOGE have experienced notable price drops of 4%, 4.2%, 2.6%, and 3.65%, respectively.
A significant contributing factor to this downturn is the substantial sell-off by Bitcoin miners. According to data from the on-chain analytics firm CryptoQuant, miners have offloaded nearly 25,000 BTC, equating to approximately $2.25 billion, as the price touched the $93,400 mark. This represents the largest miner sell-off since May 2024, suggesting increased selling pressure and potential further price declines in the near term.
The convergence of these factors — the miner sell-off and the depreciation in the value of major assets — has culminated in the considerable liquidations experienced by traders. This intricate interplay of market dynamics underscores the inherent volatility and unpredictability of the cryptocurrency landscape.
As the cryptocurrency market continues to evolve, it remains imperative for traders and investors to stay informed and adapt to the ever-changing conditions. Understanding the underlying causes of market movements can provide valuable insights and help mitigate risks associated with trading in such a volatile environment.
