Crypto Market Sees Over $575 Million in Liquidations Amid Volatile Bitcoin Moves
Crypto liquidations exceeded $575 million in the last 24 hours, including $368 million in long positions. Bitcoin accounted for $202 million of these liquidations, with $119 million from long positions being liquidated. This sharp move followed softer-than-expected Consumer Price Index (CPI) data but was largely driven by derivatives profit-taking rather than spot market selling, according to on-chain data.
Bitcoin traded near $88,100, close to the previous $90,000 level, with a demand range between $85,000 and $81,000 providing support. Prediction market Myriad, owned by Decrypt’s parent company, currently assigns a 61% probability to Bitcoin moving toward $100,000 rather than dropping to $69,000.
Meanwhile, the Bank of Japan raised its interest rate by a quarter point, ending a 30-year period of ultra-low rates. This shift may pressure the yen carry trade and reduce liquidity for risk assets, including cryptocurrencies. Crypto leverage remains elevated, with four days in December seeing total market liquidations above $500 million, according to Coinalyze.
Volatility is expected to increase heading into the holidays as liquidity tightens and portfolios undergo rebalancing. Reduced spot demand combined with defensive futures and options positioning may amplify market moves during this period.
