#cryptouniverseofficial The crypto market has started December in the red, shedding over $200 billion in total market value to settle at 3$3 trillion, its lowest level over the past week.
Crypto market sees $640 million in liquidations
The crypto market fell today amid massive liquidations that occurred during thin liquidity on exchanges and highly leveraged positions by traders. Notably, liquidity in the crypto markets tends to thin out during late Friday and early Monday hours, with fewer market makers active during weekend hours, and even small sell orders can lead to sharp price swings.
A similar occurrence took place today. Despite the absence of any major news, Bitcoin lost about 4$4,000 within minutes overnight, forcing liquidations for some highly leveraged long positions from traders.
With leverage across futures markets sitting at record highs right now, the dip from these liquidations triggered a chain reaction across derivatives platforms. Each liquidation triggered more selling pressure, and a small move quickly turned into a broader cascade that dragged down the entire market.
Data from CoinGlass show that total liquidations across the crypto market reached $641 million, with long liquidations accounting for $564 million. The majority of these losses occurred within the past 12 hours, highlighting the severity of the overnight crash and the fragility of the current trading environment.
$BTC $BNB $SOL