Over 108,000 Crypto Traders Lose $280M in End-of-Year Liquidations

The crypto market closed 2024 with dramatic price swings, leaving over 108,000 traders with liquidations totaling $280 million. Leading the losses were Bitcoin, Ethereum, and Solana, as market volatility continued to test traders’ strategies.

A Volatile End to 2024 for Crypto Traders

As the clock wound down on 2024, the crypto market reminded everyone of its inherent unpredictability. Bitcoin, which had reached a record high of $108,000 earlier in December, faced significant fluctuations, resulting in $78 million in liquidations. The broader market wasn’t spared either—Ethereum and Solana together contributed over $51 million to the total losses. Altcoins, meanwhile, added another $55 million, painting a bleak picture for leveraged traders.

While some traders attempted to profit from market swings, the losses highlighted the risks associated with high-leverage positions. Centralized exchanges like Binance, OKX, and Bybit handled the majority of these liquidations, with Binance alone accounting for 43%. OKX recorded the largest single liquidation order of $2.58 million, showcasing the scale of individual losses during this turbulent period.

Bitcoin and the Year’s Record Highs

Bitcoin was at the center of the liquidation storm, with long traders suffering the heaviest losses. According to CoinGlass, long positions accounted for $52 million of Bitcoin’s $78 million in liquidations. The sudden corrections followed Bitcoin’s rise to new heights earlier in the month, a move fueled by institutional adoption and market optimism.

Despite these losses, Bitcoin ended 2024 as a standout performer. Its ascent from under $40,000 at the start of the year to $108,000 was bolstered by the approval of spot Bitcoin ETFs in the United States and Hong Kong. These regulatory advancements provided a gateway for institutional and retail investors to enter the crypto space, driving demand and liquidity.

Bitcoin’s performance in 2024 wasn’t just about price. Several corporations adopted it as a reserve asset, citing its potential as a hedge against inflation and global economic instability. This added credibility to Bitcoin’s narrative as “digital gold,” even as volatility reminded traders of its speculative nature.

Ethereum and Solana Take Hits, But DeFi Shines

Ethereum also felt the impact of liquidations, with over $38 million in leveraged positions forcefully closed. Solana, a favorite among altcoin enthusiasts, accounted for approximately $13 million in losses. However, both networks experienced significant developments throughout the year.

Ethereum benefited from the launch of Ethereum-based ETFs, which attracted institutional attention. The network’s ecosystem saw growth in decentralized finance (DeFi) protocols and scalability solutions, further cementing its position as the leading smart contract platform. Developers continued to innovate, creating new applications and driving user adoption.

Solana, known for its high-speed transactions and low fees, faced its share of challenges, but it remained a key player in the blockchain space. While the year ended with liquidation woes, the network’s development community remained optimistic about future opportunities in gaming, NFTs, and beyond.

The Role of Exchanges in Liquidations

Centralized exchanges played a crucial role in the year-end liquidation frenzy. Binance, the world’s largest crypto exchange, handled nearly half of the total liquidations. OKX and Bybit were close behind, with traders on these platforms facing significant losses.

A notable pattern emerged during these liquidations. The use of high leverage amplified losses, particularly for long traders who misjudged the market’s trajectory. In just one hour, $2 million in leveraged positions were wiped out, and in a four-hour window, the futures market saw nearly $20 million liquidated. These statistics underscored the unforgiving nature of the crypto market for those chasing outsized returns with borrowed funds.

A Year of Transformation Amidst Challenges

Despite the losses, 2024 will be remembered as a transformative year for the crypto industry. The approval of Bitcoin ETFs marked a major milestone, signaling a shift toward mainstream acceptance and regulation. Institutional participation grew, with traditional finance players like BlackRock and Fidelity entering the market, providing legitimacy to digital assets.

The year also saw significant advancements in blockchain technology. Ethereum’s ecosystem thrived with innovations in layer-2 scaling, and networks like Polygon and Solana made strides in improving transaction speed and cost efficiency. These developments highlighted the resilience and adaptability of the crypto industry, even in the face of economic uncertainty and market volatility.