Epic bloodbath in the crypto world! 260,000 people liquidated, Bitcoin plunged 8% and turned into a meat grinder
At the beginning of December, the crypto world completely collapsed! Bitcoin plummeted 8% in one day, dropping to a low of $83,824, nearly 30% down from its peak in October, marking the largest decline in seven weeks; Ethereum was even worse, crashing 10% below $2,800, losing 36% of its market value in seven weeks, and mainstream coins generally fell over 7%, with smaller coins plummeting even further.
In just 24 hours, nearly $1 billion across the network was liquidated, with more than 260,000 people forcibly liquidated, over 90% of which were long positions, and the largest single liquidation directly lost $8.21 million. After the price dropped below $86,000, a chain reaction of stop-loss orders was triggered, causing selling pressure to grow increasingly larger, with high-leverage accounts continuously getting liquidated, directly falling into a death spiral.
In simple terms, it's a tightening of macro funds, institutions clustering to withdraw, regulatory uncertainty, coupled with technical breakdowns, and the collapse of assets related to Trump affecting market sentiment, all of which combined to explode. U.S. stocks fell in tandem, while gold actually rose; the capital of retail investors engaging in high-leverage speculation was wiped out in minutes, and the fear index dropped to 24, indicating extreme panic.
Never trust high leverage! A 100x leverage position will be liquidated with a 1% drop, and most of those liquidated in this wave were leveraged over 50x. Cryptocurrencies are not a safe haven at all, with volatility three times larger than U.S. stocks, and trying to catch the bottom now is akin to licking blood from a knife's edge; caution is key! $BTC
