Liquidations of $400 million in 24 hours: Bitcoin collapse leaves 123,200 traders out of the game

On December 17th, the Bitcoin market experienced extreme volatility that shook over 120,000 traders, resulting in massive liquidations close to $400 million within 24 hours. This movement, mainly concentrated in the last four hours before the event, exposed the fragility of leverage in the cryptocurrency market.

Two consecutive price movements that devastated positions

The event began around 9:00 a.m. EST when Bitcoin experienced a bullish surge of $3,300 in just 30 minutes, pushing the price from $87,100 to $90,300. This upward move triggered a domino effect, liquidating $106 million in short positions betting on a price decline.

However, the euphoria was short-lived. In the following 45 minutes, Bitcoin completely reversed its trajectory, falling $3,400 and erasing all gains. This subsequent collapse liquidated $52 million in long positions from traders who had entered during the pump. Multiple market analysts described this pattern as “highly volatile long candles” that printed a textbook pump and dump movement on the hourly chart.

Detailed breakdown of liquidation cleansings

According to liquidation data, Bitcoin specifically liquidated $108 million in four hours: $75 million came from forced shorts closing during the initial pump, while $32 million corresponded to longs liquidated during the subsequent fall. Ethereum followed a similar pattern, though with a higher proportion of long-squeeze.

Of the total $400 million in liquidations over 24 hours, $340 million occurred in the last 12 hours, and $310 million happened in the 4 hours prior to the described event. This temporal pattern suggests coordinated pressure on the market during the early hours of Wall Street operation.

Market manipulation or natural volatility?

Several analysts have pointed out that similar movements consistently occur at 10:00 a.m. EST, coinciding with the opening of traditional U.S. markets. This coincidence has fueled debates about whether there is a systematic factor behind these massive liquidation events.

Current price and capital flows

Bitcoin is currently trading at $86,600, recording a 1.35% decline for the day. Beyond the spot price, Bitcoin spot ETFs experienced net outflows of $277 million on December 16th, adding further pressure to the market and reflecting de-accumulation movements in institutional products.

This event underscores the importance of risk management in highly leveraged markets, where movements of $3,000 can mean the difference between profits and total liquidations for thousands of traders simultaneously.