Bitcoin Crash Wipes Out $500M in Bullish Bets—Crypto Market Shaken

Bitcoin's sharp drop below $86,000 triggered over $500 million in liquidations, wiping out bullish bets and causing major losses across the crypto market. Ether, Solana, and other tokens also fell amid renewed volatility and macro uncertainty.

Bitcoin and the broader crypto market experienced a sharp downturn, with Bitcoin plunging from above $91,000 to below $86,000 in early December. This rapid decline triggered massive liquidations, with over $500 million in leveraged bullish bets wiped out across major exchanges such as Binance, Hyperliquid, and Bybit. Nearly 90% of these liquidations were long positions, as traders betting on price increases were caught off guard by the sudden sell-off. Ether, Solana, and other major tokens also suffered significant losses, with Ether dropping over 6% and Solana nearly 7%. The downturn followed a weak November for digital assets, marked by Bitcoin's worst monthly performance since 2018. Market sentiment was further dampened by weak ETF inflows, concerns over USDT stability, and macroeconomic uncertainty, including signals of potential rate hikes from Japan and tighter crypto oversight in China. The cascading liquidations and volatility highlight the risks of leveraged trading in the crypto market.