Bitcoin, Ethereum, and XRP Hit Weekly Lows as Liquidations Soar
The cryptocurrency market faced a downturn this week, as top assets like Bitcoin, Ethereum, and XRP experienced significant price drops amid widespread liquidations. This trend signals increasing uncertainty in the market as investors navigate turbulent waters.
Unpacking the Numbers
Bitcoin, the leading cryptocurrency, saw its value fall over 3% in a 24-hour period, dropping to $85,833 on Monday—a price not seen since early December, as reported by CoinGecko. Ethereum followed suit with a dip of over 4%, reaching $2,955, while XRP plummeted 4.5%, hitting $1.90, its lowest mark in December. Other top cryptocurrencies by market capitalization, excluding dollar-pegged stablecoins, also saw notable declines in the last week.
A Closer Look at Liquidations
The crypto market saw liquidations totaling $573 million within a single day, according to data from CoinGlass. A significant portion—$486 million—came from long positions, reflecting investor bets that the market would rise. Bitcoin led liquidation losses with $205 million, followed by Ethereum at $156 million. This widespread sell-off shaved over 3% off the crypto market’s total value within a 24-hour window.
Sectors Affected by the Fall
While traditional stock market indices like the S&P 500 and Nasdaq experienced minor dips, the crypto stock market saw steeper losses. Bitcoin miner CleanSpark (CLSK) reported a 15% decline, crypto exchange Gemini fell by 12%, and Ethereum-focused BitMine Immersion Technologies dropped 8%. Even prominent platforms like Coinbase and Robinhood were affected, with their stocks dipping over 5% and less than 2%, respectively.
Is the Santa Rally Fading?
Investor sentiment remains bearish as hopes of a so-called ‘Santa rally’—a year-end market upswing—dwindle. Prediction markets like Myriad have placed the probability of a Santa rally at less than 8%, down from 20% just a week ago. With the holidays around the corner, it’s uncertain whether the market will rebound, leaving traders to watch the markets closely.
Stay Ahead in Crypto Trends
For those looking to weather market volatility, tools like Ledger’s Nano X hardware wallet can help secure your investments. Learn more about safeguarding your crypto assets by exploring Ledger Nano X.
The crypto market is ever-evolving, and while downturns like these can be daunting, staying informed and adopting secure trading practices can help investors navigate uncertainty with confidence.
