$650 Million Wipe Out in Crypto Liquidation, What’s Happening?

The cryptocurrency market experienced notable upside momentum following the election of Donald Trump as president of the United States. However, sentiment now appears to be cooling off, resulting in hundreds of millions of dollars in liquidations.

$650 Million Crypto Liquidation

On November 14, 2024, the overall crypto market experienced significant volatility, leading to the liquidation of $650 million worth of crypto assets, according to the on-chain analytics firm CoinGlass.

CoinGlass reported that nearly 200,000 traders were affected by liquidations over the past 24 hours. During this period, bulls have suffered the most. According to the data, bulls have liquidated nearly $435 million worth of long positions, while bears have faced liquidations amounting to $190 million.

However, the single largest liquidation worth $12.39 million, occurred on Binance with the BTCUSDT pair. Traders dealing in Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) have faced significant liquidations.

Why Crypto Market is Falling?

The potential reason for this significant liquidation is the price decline in major assets and the BTC sell-off by miners. In the past 24 hours, BTC, ETH, SOL, and DOGE have recorded price declines of 4%, 4.2%, 2.6%, and 3.65%, respectively.

In the past 24 hours, Bitcoin miners have sold nearly 25,000 BTC, worth $2.25 billion, as the price reached the $93,400 level, according to the on-chain analytics firm CryptoQuant. This marks the largest sell-off by miners since May 2024, indicating potential selling pressure and a possible price decline in the coming days.

The combination of the miners’ sell-off and the price decline in major assets is likely responsible for the significant liquidation experienced by traders.