Bitcoin has experienced its largest wave of liquidations since 2021, with $1.6 billion erased from the market due to a significant price drop. On December 9, the crypto market saw an 11% decline, a move largely initiated by Coinbase traders aggressively selling Bitcoin, which created downward momentum. Bitcoin's price fell close to $94,000, exacerbating the situation as overleveraged positions were liquidated. Notably, Ethereum longs also saw substantial liquidations, totaling $208 million compared to Bitcoin's $142 million. Analysts have described the liquidation event as unusual, as it involved a cascade of selling orders in a relatively mature market, leading to a rapid price decline. While some see this as a chance for market stabilization, the volatility has raised concerns about future trading conditions. Some traders are optimistic, noting that the elimination of excessive leverage could allow for a healthier market environment moving forward.

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