After the election of Donald Trump as president of the United States, the cryptocurrency market saw a surge in value. However, recent trends suggest that the market is now experiencing a downturn, leading to millions of dollars in liquidations.
$650 Million Crypto Liquidation
On November 14, 2024, there was significant volatility in the crypto market, resulting in a total of $650 million in liquidated assets, as reported by CoinGlass, an on-chain analytics firm.
CoinGlass revealed that almost 200,000 traders were impacted by these liquidations within the past 24 hours. During this timeframe, it was the bulls who bore the brunt of the losses. Data shows that long positions totaling $435 million were liquidated for bulls, while bears saw liquidations amounting to $190 million.
The largest single liquidation, valued at $12.39 million, occurred on Binance with the BTCUSDT pair. Traders involved in Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) also faced substantial liquidations.
Why Crypto Market is Falling?
The significant liquidation can be attributed to the declining prices of major assets and the selling off of BTC by miners. In the past 24 hours, BTC, ETH, SOL, and DOGE have all seen price drops of 4%, 4.2%, 2.6%, and 3.65%, respectively.
Within the same timeframe, Bitcoin miners have sold around 25,000 BTC, valued at $2.25 billion, as the price hit $93,400, according to CryptoQuant. This sell-off by miners, the largest since May 2024, indicates potential selling pressure and a potential price decrease in the near future.
The combination of miners selling off their holdings and the drop in major asset prices is likely causing the significant liquidation seen among traders.
