Bitcoin took a dramatic dive, triggering its largest liquidation event in three years. Over $1.6 billion in crypto positions were wiped out in 24 hours, including $142 million in Bitcoin longs and $208 million in Ethereum positions, according to CoinGlass. This sharp sell-off has left traders and analysts puzzled, with some calling it a “crazy reset,” according to CoinTelegraph.
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Coinbase Sparks Pre-Dump Selling Frenzy
Interestingly, Coinbase (COIN) traders played a pivotal role in this market shake-up. According to research by X account Ltrd, aggressive Bitcoin selling on Coinbase began nearly an hour before the broader crash. Ltrd noted that “this constant selling pressure was crucial in pushing the price into a region where overleveraged positions were forced to close.” This early activity acted as a domino, leading to a cascade of liquidations as Bitcoin plummeted to $94,000 — nearly completing a predicted market “inefficiency” correction from December 5.
Altcoins Hit Harder than Bitcoin
While Bitcoin longs bore the brunt, altcoins suffered even more. Ethereum (ETH-USD) longs lost $208 million, making this the “biggest long liquidation of this bull cycle so far,” confirmed CoinGlass. XRP also took a beating, falling under $2.14 amid heavy sell-offs. Ltrd called the entire situation “absolutely strange,” emphasizing that such massive sell orders are unusual in a mature market like this.
Market Reset Brings Optimism
Despite the carnage, some traders are optimistic about what lies ahead. Analyst Jelle noted on X that the shakeout may lead to more stable conditions, with altcoins finding key support levels. “Good stuff,” he added, hinting at a potential buying opportunity for those looking to re-enter the market post-reset.
At the time of writing, Bitcoin is sitting at $97,647.50.
