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For the second time in just five days, the crypto market has experienced a mass liquidation event—this time on an even larger scale. On December 6th, over $1 billion was wiped out, marking the largest single-day liquidation since August of this year. However, that figure pales in comparison to today's staggering $1.8 billion liquidated in just 24 hours. This ranks among the most significant liquidation events in cryptocurrency history.
To put it in perspective, following the FTX collapse in November 2022, $1.5 billion was liquidated between November 6–11, as Bitcoin plummeted to $15,000. Today’s liquidation volume eclipses even that infamous black swan event, underscoring its magnitude.
Bitcoin Resilience: A Tale of Two Markets
The contrasting impacts of these events on Bitcoin are telling. Post-FTX collapse, Bitcoin fell nearly 30%, from $21,000 to a low of $15,600. Today, despite the massive liquidations, Bitcoin saw a brief 7% dip before recovering 3.5%, closing the day with only a 3.5% loss. This divergence highlights the stark difference in market sentiment: the FTX collapse occurred during a peak bear market, while today's event unfolds amidst early bull market conditions.
Altcoins Face the Brunt
While Bitcoin displayed resilience, altcoins weren’t as fortunate. During Bitcoin's brief 7% decline, many altcoins shed over 25% of their value. Though some have since started recovering, they remain down 10–15%. Even robust performers like Sui and Fantom experienced significant pullbacks, presenting enticing buying opportunities for savvy investors.
Investors are currently de-risking and securing profits ahead of Thursday morning’s inflation data release. This has triggered a cascading liquidation, offering what can be seen as a bull market correction—a rare chance to buy discounted assets. Some of our favorite altcoins have seen sharp corrections, making now an opportune time to take action.
For investors feeling underexposed or worried about missing out, this correction offers a golden opportunity. Strengthening your Bitcoin position or acquiring discounted altcoins could yield substantial long-term gains. The market remains in its early growth phase, presenting an ideal environment for believers to capitalize. Contact your Stormrake Crypto Broker today to seize this opportunity.
Stormrake Spotlight: Gala Games (GALA) ($0.0476)
Stormrake Spotlight: Gala Games (GALA) ($0.0476)
Gala Games is a standout project within the crypto gaming sector, and it may be a compelling option for those looking to diversify deeper into the cryptocurrency ecosystem. During the 2021 bull run, Gala reached an all-time high of $0.82, with a market cap of $5.2 billion. Many analysts speculate that gaming will play a pivotal role in this cycle. Gala has continued building throughout the bear market and is poised to potentially lead the gaming sector once again. While this is a riskier play, the potential rewards are substantial.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin's chart paints a bearish picture. After failing to sustain levels above $100,000, it fell below before attempting a rally back to this level, only to be rejected once again. The recent liquidations drove BTC to a low of $94,150 before quickly recovering to current prices. Trading below all major moving averages and in a bearish structure, Bitcoin's outlook remains cautious. However, the rapid 'V-shaped' recovery following the liquidations offers a glimmer of hope—a bullish signal if sustained.
BTC Total ETF Flows for 9 Dec: $ - 90.5 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum mirrored Bitcoin's sharp correction and liquidation before rebounding to current levels. Its wick bounced off the key support level of $3,557, demonstrating strong buying interest. Despite this recovery, Ethereum remains in a bearish structure with downward momentum, signaling caution for the short term.
ETH Total ETF Flows for 9 Dec: $ -35.7 Million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
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Written by Alexandar Artis
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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.
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