Global cryptocurrency markets experienced a sharp decline on Friday, with falling prices triggering widespread selling. Bitcoin dropped below $83,000, and Ethereum fell under $2,800. This downturn led to roughly $2 billion in liquidated positions, shaking investor confidence and causing rapid losses across major cryptocurrencies.
Reports indicate that over 390,000 trading accounts were wiped out during the sell-off. A notable single Bitcoin order on Hyperliquid worth $37 million highlighted the intensity of the selling pressure. Bitcoin was hit hardest, with approximately $962 million in BTC positions liquidated within 24 hours, nearly $931 million of which were long positions, showing the concentrated impact on those betting on price increases.
Long position liquidations across the market neared $1.78 billion, far exceeding short liquidations of around $130 million. A stronger-than-expected U.S. jobs report reduced expectations for a December interest rate cut, sparking about $450 million in liquidations within just two hours as traders adjusted their risk exposure.
Derivatives activity added to the pressure, with over $4.2 billion in crypto options expiring that day. This included more than 39,000 Bitcoin options valued at nearly $3.4 billion. Although the long-term put-call ratio was 0.52, a surge in put buying pushed the 24-hour ratio to 1.36, indicating increased hedging. Bitcoin’s max pain point was around $98,000, well above its spot price. Ethereum options also played a significant role, with over 185,000 contracts worth about $525 million expiring, and its put-call ratio rising to 1.01 from 0.72, with a max pain level near $3,200 compared to a spot price around $2,800.
The downturn affected altcoins as well. Solana fell 11% to approximately $126, and XRP dropped over 8% to around $1.91. Other tokens like ASTER, HYPE, TNSR, DOGE, and ZEC also declined, demonstrating the broad nature of the sell-off.
On-chain monitors reported significant losses among large holders. PeckShieldAlert highlighted individual Ethereum liquidations ranging from nearly $3 million to $6.50 million. One whale, for example, was liquidated on a long wstETH position after ETH fell below $2,900, resulting in a $6.52 million loss. Lookonchain tracked an account known as Machi, which suffered over $20 million in paper losses, leaving a balance of just $15,530. Another prominent account, the “Anti-CZ Whale,” saw its profits sharply reduced on Hyperliquid.
Frequently Asked Questions
Of course Here is a list of FAQs about a Bitcoin price plunge designed to be clear concise and helpful for both beginners and more experienced individuals
BeginnerLevel Questions
1 What does it mean that Bitcoin plunged
It means the price of Bitcoin dropped very sharply and quickly in a short amount of time
2 How can 2 billion vanish so quickly
That 2 billion represents the total market value of all Bitcoin that was lost When the price falls the value of every single Bitcoin in existence decreases so the total worth of the entire market shrinks
3 Why does a Bitcoin crash affect the entire crypto market
Bitcoin is the largest and most wellknown cryptocurrency Many other cryptocurrencies tend to follow its price trend When investors get nervous and sell Bitcoin they often sell other cryptos too causing a marketwide drop
4 Is my money in a regular bank account safe if this happens
Yes generally Money in FDICinsured bank accounts is protected up to 250000 per depositor per bank Cryptocurrencies are not backed by governments or banks so they are much more volatile
5 What causes a sudden crash like this
Common causes include large investors selling off huge amounts negative news headlines new government regulations or technical issues with major crypto exchanges
Intermediate Advanced Questions
6 What is leveraged trading and how did it make the crash worse
Leveraged trading is like using a loan to amplify your bets When the price dropped many traders who used leverage were forced to automatically sell their holdings to cover their loans which pushed the price down even further in a cascade or liquidation spiral
7 What are long and short positions
Going long means youre betting the price will go up Going short means youre betting the price will go down In a sharp plunge many long positions get wiped out while short traders profit
8 Did the crash break the Bitcoin network itself
No The Bitcoin network and blockchain continued operating normally The crash was a market event not a failure of the underlying technology