$470 Million in Crypto Liquidations as Bitcoin Retreats and Altcoins Surge
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.