On the night of December 18, the value of Bitcoin (BTC) decreased by 1.7%, temporarily reaching $40,827 on the Binance platform in the pair with the stablecoin Tether USD (USDT). By 10:05 Moscow time, the first cryptocurrency recovered to $41,211. This decline followed a period of growth when BTC reached $43,000. The total capitalization of cryptocurrencies is $1.56 trillion, with Bitcoin accounting for 53.14% of the market, according to TradingView data.
Other leading cryptocurrencies also showed a decline, following Bitcoin. Ethereum (ETH), the second-largest cryptocurrency by capitalization, is trading at $2,173, having decreased by 1.2% over the day. BNB fell to $237, while Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Avalanche (AVAX) lost between 3% to 5% in the last 24 hours.
The decrease in cryptocurrency values led to the mass liquidation of margin positions on crypto exchanges. According to Coinglass, over the past day, positions of more than 75,000 traders were forcibly closed, totaling over $153 million. Most of these traders held long positions, expecting further growth in Bitcoin and other cryptocurrencies.
In the context of cryptocurrency markets, liquidation refers to a situation where an exchange is forced to close a trader's position using leverage due to partial or complete loss of their initial margin. This occurs when a trader is unable to meet the margin requirements for their leveraged position, meaning they lack sufficient funds to maintain the open trade.
