Crypto: Liquidations Hit $1 Billion Due to Unprepared Investors

Over $1 Billion has been liquidated in the Cryptocurrency market in the past 24 hours as market participants were caught off guard by the strong rise of Cryptocurrencies over the past 30 days. However, analysts suggest that the market downturn may only be short-term. "We've had a very bullish narrative over the past month that has completely unprepared the market for bad news. We're now seeing this indiscriminate selling," said Swyftx's chief analyst Pav Hundal in an interview with TinTucBitcoin. <'Short-term Concern,' Analyst Says> "This is not the start of the Christmas rally we were hoping for. But it seems to be just short-term concern," Hundal said. On December 19, around $1.02 Billion was liquidated from the Cryptocurrency market within 24 hours, with about $856.66 Million being long positions, according to data from CoinGlass. During the same period, Bitcoin (BTC) dropped 3.36%, falling back below the psychological $100K level. At the time of publication, Bitcoin is trading at $97,350, according to CoinMarketCap data. This is not the first time this month that Bitcoin dropping below $100K has wiped out a large amount of long positions. On December 5, TinTucBitcoin reported that a sudden 5.47% drop in Bitcoin's price to below $93K had erased $300 Million in just a few minutes. More recently, on December 10, a sudden cryptocurrency market downturn had wiped out over $1.7 Billion in leveraged positions within 24 hours. CoinGlass said this was the largest long position liquidation event of the current cycle so far. Commenting on the recent liquidations, Bitcoin enthusiast Fred Krueger said in a post on X on December 19 that the only way to "ruin" a Bitcoin trade is through leverage. However, Hundal remains optimistic that a "Santa rally" is still in the cards, which the market is anticipating, while Real Vision's chief crypto analyst Jamie Coutts said in a post on X on December 20 that a buying opportunity may be approaching. Crypto analyst Caleb Franzen described the volatility as typical behavior in a bull run, and said there is no reason to be concerned. Franzen said in a post on X on December 19 that there have been nine Bitcoin corrections during the previous 16-month bull run, all of which ultimately led to higher prices. "Brace yourselves," he added. Meanwhile, Hundal said he currently expects the Cryptocurrency market to price in expectations for the Trump administration going forward. Trump's inauguration as the 47th President of the United States will take place on January 20, 2025. Cryptocurrency market observers are eagerly awaiting his plans for a U.S. Bitcoin strategic reserve. "One side of the market will get it wrong on that, so I expect to see some volatility as the new administration comes in and the direction becomes clearer," Hundal added. Compiled by TinTucBitcoin