On December 5, 2024, the cryptocurrency market faced a tumultuous period, with liquidations exceeding $588 million globally. XRP led the charge with over $69 million in liquidations, followed by Bitcoin at $60 million and Ethereum at $57.94 million.
XRP's price peaked at $2.82, a seven-year high, before correcting to $2.56, triggering significant losses among traders. Over $90 million in XRP positions were liquidated in just one day, with $44 million in long positions and $46 million in short positions affected. Notably, large liquidations between $2.4 million and $2.6 million were reported on platforms like OKX.
Bitcoin's decline below $96,000 resulted in approximately $81 million in liquidations, while Ethereum saw $49 million in losses. Dogecoin, typically less volatile, faced nearly $22.5 million in liquidations. The market's instability was exacerbated by South Korean President Yoon Suk Yeol's declaration of martial law amid political unrest, which particularly impacted South Korean exchanges like Upbit.
Binance accounted for the majority of liquidations, totaling $222 million, with 63% from long positions. OKX and Bybit followed, with $134 million and $124 million in liquidations, respectively. Small-cap altcoins, including Hedera and Solana, contributed an additional $108 million to the total.
Despite some recent gains, Bitcoin's inability to surpass the $100,000 mark has left investors frustrated. Speculation surrounds potential U.S. government Bitcoin sales, especially following recent transfers to Coinbase linked to the Silk Road liquidation. Experts warn that such sales could be a strategic misstep.
The cryptocurrency market remains volatile, with significant liquidations across major assets like XRP, Bitcoin, and Ethereum. Political unrest and government actions further complicate the landscape, leaving the market in a state of uncertainty.