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XRP News Today: December Sees $638M in Crypto Liquidations, Highlighting Leverage Issues During Regulatory Uncertainty

XRP News Today: December Sees $638M in Crypto Liquidations, Highlighting Leverage Issues During Regulatory Uncertainty

Bitget-RWA2025/12/01 16:30
By:Bitget-RWA

- Crypto markets saw $638M in liquidations over 48 hours, led by $296M in long-position unwinds amid heightened volatility and regulatory uncertainty. - Bitcoin fell below $86,000 as global crypto cap dropped 4.82% to $2.94T, driven by BoJ rate hike expectations and thin altcoin liquidity. - BitMine Immersion boosted ETH purchases by 39% despite $3.48B in ETF outflows, signaling mixed institutional confidence amid market turbulence. - Binance, Hyperliquid, and Bybit each recorded >$160M in forced closures,

Crypto Market Faces Intense Selloff and Massive Liquidations

Over the past two days, the cryptocurrency sector has been rocked by a sharp downturn, resulting in $320 million worth of leveraged positions being wiped out within just four hours. The majority of these liquidations were long positions, as heightened volatility gripped the market amid evolving macroeconomic trends and ongoing regulatory ambiguity.

According to data from Coinglass and LookOnChain, nearly $296 million in long bets were liquidated, vastly outnumbering the $24.39 million in short positions that met the same fate. This surge in liquidations reflected a significant move toward risk aversion, adding to a total of $638 million in positions closed across major exchanges on December 1—long positions made up 90% of this figure.

The recent selloff followed a week marked by waning investor confidence. The total value of the global crypto market shrank by 4.82%, dropping to $2.94 trillion. Notably, Bitcoin (BTC) slipped below $86,000 for the first time since late October. Experts pointed to several contributing factors, such as growing expectations for a Bank of Japan interest rate hike in December and limited liquidity in key altcoins. A spokesperson from GeekStake commented that the current downturn highlights how quickly sentiment can shift in the digital asset space, especially when leverage is involved.

Crypto Market Volatility

Institutional Moves and Shifting Capital

BitMine Immersion (BMNR), which holds the largest Ethereum treasury at 3.73 million ETH, recently reported a 39% increase in its weekly ETH acquisitions. This move signals ongoing institutional faith in Ethereum. The company, managing $12.1 billion in digital assets and cash, highlighted its advanced staking infrastructure, set to launch in early 2026, as a secure solution for validator networks.

Despite this, institutional outflows have been accelerating. Crypto ETFs saw $3.48 billion withdrawn in November, while Cardano (ADA) experienced $19.3 million in outflows as investors concentrated on leading assets.

Exchange Data Reveals Liquidation Impact

Major exchanges like Binance, Hyperliquid, and Bybit each reported over $160 million in forced liquidations. Decentralized platforms such as Uniswap also felt the pressure, with trading volumes plummeting to $79.98 billion in November. The brunt of the liquidations was borne by altcoins, with Solana (SOL), XRP, and BNB all declining between 4% and 7% as traders rushed to minimize losses.

Interestingly, XRP saw its trading volume soar by 92% to $3.92 billion, despite its price dropping by 6.74%, indicating heightened speculative activity.

Regulatory Shifts Add to Market Uncertainty

Regulatory changes have further unsettled the market. The U.S. SEC's Project Crypto and the proposed GENIUS Act were described by BitMine’s Thomas Lee as potentially transformative for the financial sector, drawing comparisons to the end of the gold standard in 1971. Meanwhile, Ripple’s recent approval for an expanded payment license in Singapore and the anticipated launch of several XRP ETFs have added new layers of complexity to the market landscape.

Analysts Advise Caution Amid Ongoing Volatility

Experts caution that the recent wave of liquidations highlights the vulnerability of leveraged positions in such a turbulent environment. Coinglass noted that the current distribution indicates a significant unwinding of long exposure alongside price declines, urging traders to carefully review their margin strategies and liquidity risks. With upcoming policy decisions from the Federal Reserve and the Bank of Japan, the crypto market is likely to remain volatile in the near future.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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