The crypto market is experiencing a significant decline in volatility, as evidenced by a sharp drop in liquidations. Data from CoinGlass reveals that total liquidations over the past 24 hours have reached $240 million, a substantial decrease from the over $1 billion recorded on multiple occasions last week.
Bitcoin, Dogecoin, and XRP Bear the Brunt
Bitcoin, Dogecoin, and XRP were among the cryptocurrencies most impacted by the recent volatility. Bitcoin’s price plunge to the $94,000 range caught many long traders off guard, resulting in $64.92 million in total liquidations. Long traders suffered losses of $44 million, while short traders’ liquidations amounted to $20.92 million.
XRP experienced slightly lower liquidations at $6.57 million, with short traders incurring greater losses of $3.65 million. Despite experiencing both significant growth and volatility, XRP has shown a remarkable increase in wallet activity, with a 253% gain over the past month.
Dogecoin saw $9.2 million in liquidations, with almost equal losses for both long and short traders, reflecting uncertainty about the coin’s future direction amid its historically volatile price movements.
Bitcoin Consolidates, Santa Rally Absent
With reduced volatility, Bitcoin has entered a consolidation phase, defying expectations of a traditional “Santa Rally.” The coin is currently trading at $93,907.15, down 1.45% in the last 24 hours. This represents a 13% drop from its all-time high of $108,268.45 reached just seven days ago.
Correlation with Bitcoin Remains a Limiting Factor
XRP and DOGE, like many other altcoins, exhibit a strong correlation with Bitcoin. This high correlation could potentially limit their growth, as any significant decline in Bitcoin’s price may negatively impact these assets. Despite whale activity and other positive fundamentals, a lack of sustained growth in Bitcoin could lead to prolonged downturns for these cryptocurrencies.
December 2024, Cryptoniteuae
