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Quick analysis of the situation
Ah, December 9, 2023—a date that will live in infamy, not because of some great historical battle or a run-of-the-mill celebrity breakup, but because it marked a seismic crash in the world of cryptocurrency. If you thought the holiday shopping frenzy was intense, you should have seen the crypto traders scrambling for cover as Bitcoin and friends took a nosedive that would leave even a seasoned airline pilot queasy.
Let’s kick things off with Bitcoin. The digital gold took a hit too, dropping from a lofty $101,109 down to a mere $94,150— a trendy -7% decline showcasing its swanky new “on sale” sign. Meanwhile, altcoins were not just feeling blue; they were in a full-blown existential crisis. Ethereum went on a rollercoaster ride down by -12%, XRP made everyone question their loyalty with a -22% plunge, and Solana, Cardano, Dogecoin, and even Shiba Inu joined the pity party with losses ranging from -15% to a staggering -25%. Honestly, watching altcoins tumble faster than a toddler learning to walk was both tragic and oddly mesmerizing.
As if that weren’t enough drama for one day, Coinglass reported that over 562,000 traders were liquidated as if the market had suddenly decided that everyone needed a lesson in humility—total liquidations reached a whopping $1.7 billion. It’s like the market threw a surprise liquidation party and forgot to invite anyone. The largest single liquidation? A little something worth $19.69 million on Binance in the ETHUSDT pair. Talk about keeping your friends close and your liquidation orders closer!
What about our dear Bitcoin? Its $143 million in liquidated longs was just a “meh” compared to the wild ride that altcoins experienced. Ethereum saw $219 million, while the likes of Doge and XRP made appearances worthy of a soap opera plot twist, with liquidations of $86 million and $53 million, respectively. In terms of leverage flushes, this one was nobly compared to the cataclysmic $10 billion that occurred back in April 2021—oh, the nostalgia!
So, what sparked this crypto calamity? According to your go-to crypto oracle ltrd, it began with a gentle yet ominous selling pressure on Coinbase, where traders seemed to be feeling particularly aggressive long before the tidal wave hit. The initial cracks in this financial earthquake were exacerbated by overheated funding fees and elevated open interest levels. In modern parlance, it was like watching a poorly executed game of Jenga where the whole tower finally came crashing down, sending heavy-stacked traders scrambling for whatever safety they could find.
Even in this market chaos, Bitcoin displayed some semblance of decorum—like that one friend who maintains calm during a crisis. But Ethereum? Oh boy. It showed signs of accumulation as it descended, hinting at a major player taking advantage of the fire sale. Meanwhile, XRP was the drama queen of the day, with unexplainably large sell orders crashing in like the unwelcome relative at your holiday dinner. Amid chaos, it was fiercely evident that liquidity issues loomed large for even the most esteemed altcoins.
As the dust settled (or at least as much as dust settles in the ever-volatile world of crypto), prices began to reverse, proving yet again that investors can’t resist a good bargain. While Bitcoin was still down -2.4%, and ETH down -4.8%, it was all part of that wild and crazy dance that crypto folks are all too familiar with.
And if you think this is the end of the story, think again. Macro analyst Alex Krüger cautiously reassured us that “nothing’s changed” and that prices will eventually go up. Yes, it seems we are destined for more leverage flushes in the upcoming months. It’s like an obligatory holiday family reunion where the same arguments ensue every year—chaotic, inevitable, and utterly fascinating to watch.
For now, at press time, Bitcoin trades at around $97,401, still holding its head high in a market that has proven time and again that it can pivot like a seasoned ballroom dancer. As for December 9? It will forever be etched into the annals of crypto history—a day when the great crypto shuffle unfolded, leaving a trail of liquidated dreams and a few fierce optimists contemplating their next move. Dance on, crypto lovers; the show must go on!
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image(s) are provided by Unsplash and/or other free sources. They are illustrative and may not represent the content truly.
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Please, behave!