The altcoin market, which suffered significant losses in mid-last month, is transitioning to a new consolidation phase in December. Some altcoins with unique catalysts and news have led many derivative traders to take one-sided positions.
Along with this, there are important macro events this week. Such events can significantly expose traders to the risk of liquidating positions.
1. Zcash (ZEC)
From the peak of $748 set last month, ZEC has fallen by 50%. This deep decline attracts investors who believe they missed an initial opportunity. This sentiment leads derivative traders to expect a rebound in December. As a result, the cumulative liquidation of long positions has surged.
Another reason for derivatives traders to bet on long positions has emerged. Zcash founder Zooko Wilcox is scheduled to participate in a discussion hosted by the SEC on December 15. This concerns cryptocurrency, financial regulation, and privacy. Investors expect his participation to amplify support for privacy altcoins, including ZEC.
If long positions are overly confident without a stop-loss plan, ZEC could drop to $295 this week, exposing long traders to liquidations of up to $98 million.
According to a recent analysis by BeInCrypto, ZEC remains in a broader downtrend following an initial FOMO rally. Its technical structure continues to resemble a bubble pattern.
2. Aster (ASTER)
Aster, the leading derivatives DEX on the BNB Chain, benefited from a surge in trading activity during the perpetual DEX boom in September. However, its price has since fallen over 60% and is now fluctuating below $1.
The liquidation map shows that the total active liquidation volume of short positions is greater than that of long positions. Nevertheless, short sellers may face significant risks this week.
Aster recently announced its accelerated share buyback program starting from December 8, 2025. The new daily buyback rate has increased from $3 million to $4 million.
This development could support price increases this week. If ASTER rises to $1.07, the total liquidation volume of short positions could exceed $32 million.
Technically, analysts also note that the price has reached a strong support area and has broken through a one-month trend line.
3. Bittensor (TAO)
The liquidation map of Bittensor (TAO) shows a severe imbalance. The liquidation volume of long positions is much larger than that of short positions.
If TAO drops to $243.50, long traders may face losses of nearly $17 million. Conversely, if it rises to $340, about $5 million in short positions could be liquidated.
Why are so many traders betting on long positions? Many expect the price to rise before 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 TAO until the total supply reaches 10.5 million TAO.
"This reduction in supply decreases emissions for network participants and increases the scarcity of TAO. Bitcoin's history shows that supply reductions can enhance network security and market value while increasing overall network value. Bittensor's first halving also represents an important milestone in the network approaching a cap of 21 million tokens." - Grayscale explained.
Grayscale's report has bolstered positive sentiment among long traders. Without strict stop-loss plans, the "buy the rumor, sell the news" effect could trigger widespread liquidations.
Additionally, the second week of December is when the Federal Reserve (Fed) announces its interest rate decision. Historically, this announcement has a much greater impact on the market than most internal cryptocurrency news. Even if traders accurately predict the Fed's moves, extreme volatility can lead to liquidations on both long and short positions.
