According to data provided by CoinGlass, more than $1.2 billion worth of crypto has been liquidated over the past 24 hours.
Long positions, unsurprisingly, account for the vast majority of the wipeout ($1.07 billion).
The largest single liquidation order took place on Binance, with one trader losing nearly $16 million.
Binance comes in first place by the total amount of liquidated crypto with $546 million.
Earlier today, the price of Bitcoin plunged to an intraday low of $96,682, according to CoinGecko data The cryptocurrency is down nearly 7% in just 24 hours.
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Major altcoins are taking a more severe beating, with the Ripple-linked XRP token plunging by as much as 10%.
Dogecoin (DOGE) and Cardano (ADA) have also recorded double-digit losses, plunging by 19.4% and 15.7%, respectively.
As reported by U.Today, the cryptocurrency market turned bearish after the US Federal Reserve indicated that it would reduce easing in 2025 after implementing a “hawkish” rate cut.
Now, only two rate cuts are expected next year in a huge blow to risk assets.
The US equities also appeared under severe strain, with the Dow recently logging its longest losing streak in 50 years.
“Higher rates are bad for risk assets, and the Fed’s announcement caused a sharp pullback in all risk assets,” Bitwise CIO Matt Hougan noted in a recent post.
Hougan has also pointed to the high amount of leverage that exacerbated the recent correction. “This being crypto, however, the initial pullback wasn’t the end of the story. Leverage is a fact of life in crypto, and when there are sharp pullback in the market, levered positions get stopped out,” he noted.
