The cryptocurrency market witnessed a major liquidation event following Bitcoin’s failure to surpass the $100,000 mark on November 24th, resulting in over $470 million in liquidated positions. This marks one of the largest liquidation events in over six months.
Key Liquidation Data
- Total Liquidations: $470.5 million in 24 hours.
- Long Positions: $352.6 million liquidated.
- Short Positions: $119.9 million liquidated.
- Major Contributors:
- Bitcoin and Ether: $108.9 million combined.
- Altcoins:
- Dogecoin: $33.1 million.
- XRP: $27.6 million.
- Stellar (XLM): $21.6 million.
- Other significant liquidations: Solana, The Sandbox, Polkadot, and Cardano.
Altcoin Rally Amid Liquidations
Despite the liquidation event, several altcoins from the 2020–2021 bull run rallied significantly:
- Stellar (XLM): Gained up to 50%, marking one of the strongest performances.
- Dogecoin (DOGE): Hit a new all-time high since May 2021.
- Analyst Insights:
- Miles Deutscher noted the altcoin surge was driven by renewed interest from inactive traders reinvesting in assets they are familiar with.
- Others suggest that utility tokens like XLM and DOGE were previously undervalued, making them attractive in a market heavily favoring Bitcoin and memecoins.
Bitcoin's Recent Performance
- Price Movement:
- Current Price: $95,790, down 3.5% from the all-time high of $99,645 on November 22nd.
- Monthly Growth: 44% increase since November 5th, boosted by Donald Trump’s presidential victory and renewed market optimism.
- Dominance and Market Cap:
- Bitcoin dominance: 56.2% of the total $3.46 trillion crypto market capitalization.
Conclusion
The $470 million liquidation event underscores the volatile nature of cryptocurrency markets, particularly as Bitcoin approaches critical psychological levels like $100,000. While Bitcoin’s pullback triggered widespread liquidations, the rally in altcoins like Dogecoin and Stellar highlights growing trader interest in assets beyond Bitcoin, driven by a mix of sentiment and perceived value opportunities.
With Bitcoin’s dominance remaining strong, the market continues to reflect a balance between its leadership and resurgent interest in altcoins.
