Bitcoin retrace leads to $470M in crypto liquidations, altcoins surge

Hey there! So, here’s the scoop on what’s been happening in the world of cryptocurrency lately. Over the last 24 hours, we saw a pretty big drop in Bitcoin after it couldn’t quite reach that elusive $100,000 mark. This led to one of the largest crypto liquidation events we’ve seen in a while, with over $470 million in positions getting wiped out. Long liquidations made up $352.6 million of that total, while short liquidations were at $119.9 million. And get this—altcoins were hit the hardest.

In fact, altcoins like Dogecoin, XRP, Stellar, and Sandbox saw a larger share of liquidations than usual. Some of these top altcoins from the 2020-2021 cycle even surged as high as 50%. It was quite the rollercoaster ride for these coins!

Overall, Bitcoin and Ether accounted for a good chunk of the liquidations, totaling $108.9 million. But it was interesting to see Dogecoin, XRP, and Stellar round out the top five with $33.1 million, $27.6 million, and $21.6 million liquidated, respectively. Other coins like Solana, Sandbox, Polkadot, and Cardano also took a hit.

Now, the interesting part is that many of these altcoins unexpectedly outperformed on Nov. 23-24, with some even seeing a 50% increase in value. For example, DOGE hit its highest point since May 2021, the same month it reached its all-time high. It’s fascinating to see these trends play out in the crypto market.

Industry analyst Miles Deutscher mentioned that some traders from the last cycle are coming back and re-investing in tokens they’re familiar with. It seems like there’s a renewed interest in these utility tokens that are trading below what many consider fair value. It’ll be exciting to see how things continue to unfold in the crypto world!

As of now, Bitcoin is trading at $97,790, down 2% from its all-time high of $99,645. Despite the recent dip, Bitcoin’s price has still rallied almost 44% since Nov. 5. And with Bitcoin dominance at 56.2% of the total crypto market cap, valued at $3.46 trillion, it’s clear that the crypto market is still going strong.

Keep an eye on these developments, and stay tuned for more updates on the ever-evolving world of cryptocurrency!