Crypto liquidations have hit a record after a recent crypto rally that saw Bitcoin record all-time highs of $99,000. Bitcoin’s value dropped below $92,000 on November 26, 2024, sparking $693 million in liquidations, with $577 million in long positions affected. The sell-off followed profit-taking after Bitcoin’s recent rally and Bitcoin failed to capture and hold the $100,000 mark. The largest liquidation, worth $4.67 million, occurred on Binance. Other major cryptocurrencies, including Ethereum and Solana, also experienced steep crypto liquidations. Analysts attribute the dip to market corrections and intensified speculative trading, despite Bitcoin’s significant 31% gain in November.
Live liquidations heatmap, source: coinglass
Bitcoin’s slide reflects a natural correction after its meteoric rise this in November. The rise began on November 6 after Trump was declared president in the just concluded US presidential election. Trump had come out strongly in support of Bitcoin and crypto during the campaign period. Analysts predicted that a ‘Trump crypto rally‘ would come once he won and most were largely true.
Investors capitalized on the rally, leading to sell-offs that intensified the decline. As Bitcoin dropped, other cryptocurrencies including memecoins also saw substantial losses. Analysts caution that further losses could disrupt bullish momentum as traders adjust to increasing liquidations. Despite the setback, Bitcoin remains significantly higher than its start-of-year levels. Bitcoin price at $92,500 remains a key support level that many traders are watching.
MicroStrategy Corporation with another bitcoin purchase
This comes after MicroStrategy spent $5.4 billion to buy another 55,000 bitcoins, the largest purchase the company has made since it started acquiring bitcoin in 2020. According to Saylor, the purchase was made at a price of $97,862.
Usually, such purchases in the recent past have resulted in short-term bear trend that usually recovers shortly after. It is unclear if the purchase also triggered the current market dump. Holding approximately 386,700 bitcoins currently, the firm is becoming one of the biggest bitcoin holders and its actions could come with bigger market movement implications in the future.
