Bitcoin has experienced record liquidations, marking the highest since 2021, following a significant price drop that wiped out approximately $1.6 billion from the crypto market. The downturn began with a notable sell-off by Coinbase traders who aggressively offloaded Bitcoin, contributing to a cascading liquidation effect. This resulted in a market cap decline of up to 11% on December 9, with Bitcoin dipping close to $94,000. Reports indicate that longs in Bitcoin were liquidated to the tune of $142 million, compared to $208 million in Ether longs. Experts pointed out the unusual nature of the market's sharp decline, which included massive sell orders causing a quick drop of over 5%. Despite the turmoil, some traders view the liquidations as a potential reset for the market, suggesting a return to stability as overleveraged positions have been cleared out.

Source 🔗