The digital currency market suffered liquidations worth close to $2 billion within 24 hours.
391,164 traders were affected, and long positions lost $1.78 billion in losses.
Bitcoin was liquidated for about $960 million, while prominent traders like Anti CZ Whale are facing losses.
The cryptocurrency market has seen nearly $2 billion in liquidations over the past 24 hours, with the total market capitalization dropping below $3 trillion for the first time in five months.
Bitcoin ($BTC ) alone accounted for nearly half of the total liquidations, with optimistic speculators suffering the largest losses during the last sweep.
A major liquidation sweeps the cryptocurrency market
According to data from Coinglass, the cryptocurrency space experienced another major liquidation event. Over the past 24 hours, 391,164 speculators were liquidated, bringing the total liquidations to $1.91 billion.
Long positions represented $1.78 billion of the total liquidation, while the total for shorts was only $129.3 million. The largest single liquidation occurred on Hyperliquid, a decentralized perpetual contract exchange, where a BTC-USD trade of $36.78 million was closed.
Cryptocurrency liquidations approach $2 billion. Source: Coinglass
Bitcoin led all liquidations, accounting for $929 million of a total of $960 million in long positions. Ethereum (ETH) followed with $403.15 million, again primarily from long positions driven by leverage.
The data on the series highlights the significant impact of the sweep on prominent speculators. PeckShieldAlert reported that several major ETH whales were liquidated after the second-largest cryptocurrency fell below $2,900. Individual liquidations ranged from $2.9 million to $6.52 million.
Moreover, Lookonchain noted that a prominent individual saw their account drop to just $15,538. Their total losses have now exceeded $20 million. Another significant loss was recorded by the "Anti-CZ whale."
A blockchain analytics firm reported that this trader's profits on Hyperliquid plummeted significantly in just 10 days. The large leveraged positions on $ETH and $XRP were the main reason. Furthermore, the whale was liquidated again today.
Lookonchain added that "he was previously a legend with profits close to $100 million — now his profits have dropped to $30.4 million."
This sale comes amid a drop in the total market capitalization of over 6% in the past day, reaching $2.9 trillion. The Kobeissi Letter confirmed that the market has lost $1.3 trillion in value since early October.
The post stated that "this is one of the fastest-moving bear markets in the history of cryptocurrencies."
The Kobeissi Letter described the market as a mechanical bear market caused by heavy leverage and scattered liquidations. With leveraged traders forced to sell as prices decline, it adds a downward feedback loop. According to their analysis,
"Throughout the 45 days of this bear market, cryptocurrencies have seen little to no negative developments in terms of fundamentals. The market is efficient. It will return to equilibrium."
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