Crypto Market Sees $470M in Liquidations as Bitcoin Retraces and Altcoins Surge

The cryptocurrency market experienced a major liquidation event over the weekend, with a total of $470 million worth of positions wiped out. Bitcoin’s failure to break the $100,000 mark on November 24 triggered significant market volatility, contributing to one of the largest liquidation events in over six months.

Bitcoin and Altcoins Drive Major Liquidations

In the past 24 hours, liquidations across the crypto market reached $470 million, with long liquidations accounting for the majority at $352.6 million, while short liquidations totaled $119.9 million. Altcoins were particularly affected, comprising the bulk of the wiped positions.

Bitcoin (BTC) and Ether (ETH) were the primary contributors to this wave of liquidations, with a combined $108.9 million in positions closed. However, altcoins such as Dogecoin (DOGE), XRP (XRP), and Stellar (XLM) saw disproportionately large liquidation events compared to their usual share. Dogecoin had $33.1 million in liquidations, XRP saw $27.6 million, and Stellar experienced $21.6 million in liquidations.

Other notable altcoins like Solana (SOL), Sandbox (SAND), Polkadot (DOT), and Cardano (ADA) also saw substantial liquidation activity, further highlighting the increased volatility in the market during this period.

Altcoin Surge: Unexpected Performance from 2020-2021 Tokens

Amid the liquidations, several altcoins from the 2020-2021 bull cycle experienced a surprising resurgence. Tokens like Stellar (XLM) soared by as much as 50%, while Dogecoin (DOGE) reached its highest price since May 2021, the same month it hit its all-time high. This sudden rally caught many traders off guard and contributed to the heightened volatility.

Industry analyst Miles Deutscher speculated that many traders from the previous bull cycle, who may have been inactive for some time, are reopening their wallets and reinvesting in tokens they’re familiar with. Others pointed out that some utility tokens, which have been trading below their fair value, are gaining traction in a market that has seen Bitcoin and memecoins outperform other assets.

Bitcoin’s Struggle to Break $100K and Its Impact

Bitcoin’s price retraced after coming within striking distance of the $100,000 milestone, trading at $97,790, down approximately 2% from its all-time high of $99,645 on November 22. The cryptocurrency had surged nearly 44% since November 5, following the U.S. presidential election, when Republican candidate Donald Trump’s victory spurred optimism in the market.

Despite Bitcoin’s recent dip, its dominance in the crypto market remains strong. Currently, Bitcoin accounts for 56.2% of the total cryptocurrency market cap, which is valued at $3.46 trillion, according to CoinGecko.

Conclusion: A Market in Flux

The $470 million in liquidations over the weekend illustrates the volatile nature of the current cryptocurrency market. Bitcoin’s struggle to reach the $100,000 mark, coupled with the unexpected performance of altcoins like Dogecoin, XRP, and Stellar, underscores the shifting dynamics of the market.

As Bitcoin continues to consolidate around the $97,000 mark, traders are closely watching the performance of altcoins, which have shown signs of resurgence. With Bitcoin still dominating the market, the next phase of this rally could hinge on whether it can finally break through the $100,000 barrier, or if the market will see further volatility in the coming weeks.