The altcoin market in December no longer shows the large losses of last month. It is now moving into a new sideways phase. Various altcoins with unique catalysts and news have led many derivative traders to take one-sided positions.
However, this week also brings a number of significant macro events. These events could expose their positions to substantial liquidation risks.
1. Zcash (ZEC)
From the all-time high of $748 set last month, ZEC has fallen by 50%. Such a deep decline often attracts investors who believe they have missed earlier opportunities. This sentiment encourages derivative traders to expect a recovery in December. As a result, the accumulated liquidation volume on the Long side has increased significantly.
Traders also received another reason to bet on Long positions. Zooko Wilcox, the founder of Zcash, will participate in a discussion on December 15 organized by the SEC regarding crypto, financial oversight, and privacy. Investors expect his presence to strengthen support for privacy altcoins, including ZEC.
If Long positions remain overly confident without stop-loss plans, Long traders could face up to $98 million in liquidations if ZEC drops to $295 this week.
A recent analysis from BeInCrypto shows that ZEC remains in a broader downward trend following the previous FOMO rally. The technical structure still resembles a bubble pattern.
2. Aster (ASTER)
Aster, a leading derivative DEX on BNB Chain, benefited from increased trading activity during the Perpetual DEX hype in September. However, the price has since fallen by more than 60% and is now fluctuating below $1.
Liquidation maps indicate that the total active liquidation volume for Short positions exceeds that of Long positions. Nevertheless, Short sellers may face significant risks this week.
Aster recently announced an accelerated buyback program starting on December 8, 2025. The new daily buyback rate is about $4 million, compared to the previous $3 million.
This development could support a price increase this week. If ASTER rises to $1.07, the total liquidation volume on the Short side could exceed $32 million.
Technically, analysts also note that the price has reached a strong support zone and has broken above a one-month trend line.
3. Bittensor (TAO)
The liquidation map for Bittensor (TAO) shows a severe imbalance. The liquidation volume on the Long side far exceeds that of the Short side.
If TAO drops to $243.50, Long traders could face nearly $17 million in losses. Conversely, a rise to $340 could liquidate about $5 million in Short positions.
Why are so many traders betting on Long positions? Many expect the price to rise ahead of TAO's first halving.
According to BeInCrypto, around December 14, Bittensor’s first halving will reduce the daily issuance from 7,200 TAO to 3,600 once the total supply reaches 10.5 million.
This reduction in supply will lower emissions for network providers and increase TAO's scarcity. Bitcoin's history shows that reduced supply can lead to a higher network value, despite smaller rewards, as network security and market value have been strengthened by four consecutive halvings. Similarly, Bittensor's first halving marks a significant milestone in the growth of the network as it approaches its 21 million token supply cap, Grayscale explained.
Grayscale's report has strengthened the bullish sentiment among Long traders. Without strict stop-loss planning, a 'sell-the-news' effect can cause widespread liquidations.
Moreover, the second week of December is the week in which the Federal Reserve announces its interest rate decision. Historically, this announcement has a much larger impact on the market than most internal crypto news. Even if traders correctly predict the Fed's move, they may still not avoid extreme volatility causing liquidations for both Long and Short positions.
