Nearly $19 billion was wiped out in the largest crypto liquidation ever, with longs taking 90% of the hit, triggering a sharp risk-off shift.
The market had previously shown significant growth, with the total crypto market cap reaching a record $4.27 trillion in the first week of Q4, and Open Interest (OI) reaching a record $233 billion.
The market once again showed that “blind optimism” can cut both ways.
This liquidation could be a reality check on prior FOMO, possibly setting up a post-COVID-style rebound.
Author's summary: Crypto market faces largest liquidation.