The cryptocurrency market experienced a significant shake-up with $1.5 billion in liquidations in the last 24 hours, partly due to the Bitcoin price falling below the $95,000 threshold.

Crypto Liquidations Rise to $1.5 Billion as Bitcoin Drops Below $95,000

Liquidations in Numbers

Data from Coinglass reveals that:

During this volatile period, approximately 514,400 investors faced liquidation.

Long positions accounted for the majority with $1.38 billion in liquidations compared to $136.7 million in short positions.

Bitcoin liquidations totaled $163.4 million, while Ethereum saw liquidations of $204.7 million.

Bitcoin was trading at $97,000 at the time of writing, but dropped to $94,150 overnight.

This follows a $1.1 billion liquidation on Dec. 5, the largest since December 2021. Analysts attribute these latest events to a “leverage siphon,” where overly leveraged positions of large stockholders are forced out of the market.

Bitcoin recently reached a historic milestone by surpassing $100,000 for the first time on Dec. 4, peaking at $103,679.

The rally was fueled by optimism following the election of Donald Trump as the 47th President of the United States, with markets anticipating a favorable regulatory environment for digital assets.

The sharp correction points to the high volatility and risk associated with cryptocurrency trading as traders and investors adjust to the rapid changes in the market.

*This is not investment advice.