Crypto Market Sees $1.75 Billion in Liquidations as Bitcoin Price Drops Below $95K

Highlights:

• The crypto market saw $1.75 billion in liquidations as Bitcoin dropped to $94,100.
• Bitcoin and Ethereum faced significant dips, with altcoins plunging more than 10%.
• Google’s quantum chip ‘Willow’ and Bhutan’s Bitcoin transfer contributed to market uncertainty.

In the last 24 hours, the crypto market faced $1.75 billion in liquidations as Bitcoin (BTC) price dropped from above $100,000 to $94,100 and Ethereum (ETH) fell 8% below $3,800, according to Coinglass data. Bitcoin has partially rebounded from its recent dip, now trading at $97,498. However, it remains 1.61% lower over the past 24 hours. The broader crypto market continues to face pressure. Most altcoins have plunged by over 10% in a single day.

The market-wide selloff resulted in $188.50 million in short liquidations and $1.56 billion in long liquidations, with the overall crypto market cap dropping by 7.5%. This widespread liquidation activity has affected 580,470 traders. Most liquidations happened on Binance and OKX, with $716 million and $439 million, respectively. 

Bitcoin saw liquidations totaling $189.01 million, with $146.79 million from long positions and $42.22 million from short positions. The second-largest crypto, Ethereum, also witnessed a 4.34% downturn over the past day — now trading at $3,733. ETH recorded liquidations amounting to $246.29 million, comprising $219.88 million from long positions and $26.41 million from short positions.

Solana (SOL) punged 5.62% to trade at $216, while Dogecoin (DOGE) dropped over 8%. Dogecoin and Solana saw the liquidation of $100.55 million and $63.06 million, respectively, in the past 24 hours. XRP and PEPE also saw significant liquidations, with $71.66 million and $28.41 million wiped out, respectively.

Factors Behind Bitcoin’s Price Pullback

No clear cause has been identified for Monday’s market pullback. Crypto traders suggest several possible factors. These include Google’s release of the ‘Willow’ quantum chip and recent Bitcoin transfers from Bhutan.

Google Unveils Quantum Chip ‘Willow’

On Monday, Google launched its new quantum chip, ‘Willow.’ Hartmut Neven, Founder of Google Quantum AI, claimed the chip can complete tasks in under five minutes that would take the fastest supercomputers 10 septillion years.

Google’s Willow chip, developed by Quantum AI, improves error correction and adds more qubits, advancing quantum computing. The crypto community worries it could weaken Bitcoin’s security, as hackers may break encryption with more computing power.

Bhutan Government Transfers 406 BTC to QCP Capital

Moreover, a wallet associated with the Royal Government of Bhutan transferred 406 Bitcoin earlier today. According to Arkham Intelligence data, the transaction was made to QCP Capital, a digital asset trading firm based in Singapore. The transfer was divided into four smaller transactions. After that, Bhutan sent another $19 million in Bitcoin to an address starting with “bc1qwug2,” and the funds were later moved to a Binance hot wallet.

Just In: Royal Government of Bhutan has sent 406.074 $BTC worth $40M to #QCP Capital.https://t.co/q4dW3qJBT5 pic.twitter.com/3TK1fvBoOk

— Onchain Lens (@OnchainLens) December 9, 2024

The reason behind the government’s wallet activities remains unclear. Last month, Bhutan reportedly sold 367 Bitcoin for about $33.5 million through Binance, causing Bitcoin’s price to drop below $90,000.

Despite recent sales, Bhutan is still among the top five government holders of Bitcoin globally. The country currently retains 11,688 BTC, valued at nearly $1.1 billion. Unlike most nations that acquire Bitcoin through asset seizures. Moreover, Bhutan mines its Bitcoin using hydroelectric power.