A record crypto liquidation event on November 15 wiped out $19 billion in leveraged positions, primarily impacting Bitcoin, Ethereum, and major altcoins, affecting participants globally.
The liquidation signifies a major market correction, resetting leverage and influencing investor confidence, while highlighting the volatility and inherent risks in cryptocurrency trading.
Recent crypto liquidation wiped out nearly $19 billion, primarily affecting Bitcoin and major altcoins. The episode marks the largest single-day liquidation in history, impacting both institutional and retail investors.
Traders and major exchanges were heavily affected, with long positions significantly impacted. This incident dramatically exceeded previous liquidation records, shifting market dynamics and resetting risk management processes.
Comparing Past Crypto Crises With Recent Turmoil
This event surpasses earlier crises like the March 2020 COVID panic and November 2022's fallout. The macroeconomic trigger included recent trade policy changes, amplifying fears and market imbalance.
Experts, such as Nic Puckrin, believe the market clean-out was necessary for recalibrating leverage. "The good news is that this (crash) has cleaned out the excessive leverage and reset the risk in the market, for now," stated Nic Puckrin, Co-founder, The Coin Bureau. On-chain analysts emphasize Bitcoin's relative resilience compared to other financial instruments during this downturn.