cryptocurrency flash crash

Cryptocurrency Flash Crash Results in Liquidation of $170 Million in Solana (SOL), Bitcoin (BTC), and Ethereum (ETH)

Liquidation of $170 Million in Solana, Bitcoin, and Ethereum as a result of the cryptocurrency flash crash created distress in the market. But despite this event, the cryptocurrency market is showing signs of an upward trend which is creating a positive enthusiasm among the investors.

Liquidation of $170M in SOL, BTC and ETH after cryptocurrency flash crash

In the lead-up to the New Year, a sudden period of market weakness prompted the liquidation of nearly $200 million in orders across various cryptocurrencies.

The latest crypto liquidation data reveals that Solana (SOL), Bitcoin (BTC), and Ethereum (ETH) collectively faced over $170 million in liquidations during this unexpected flash-crash event.

This disruption has unsettled the cryptocurrency market, occurring just a week before the customary New Year period, which is typically associated with heightened market volatility.

Market dynamics

As the year draws to a close, market dynamics often undergo a shift. Retail investors frequently opt to cash out for holiday expenses, while larger investors close positions to navigate unpredictable market swings amid reduced liquidity.

The liquidation data underscores this seasonal trend, illustrating a notable number of positions being liquidated due to rapid price fluctuations.

During the holiday season, order books tend to thin out, with decreased trading volumes and some market makers taking a step back. This setting amplifies the potential for abrupt and substantial market movements, as evident in the current state of the crypto market.

Market-Indicated Upward Trend

Despite the flash crash and liquidations, the overall market exhibits indications of an upward trend. The $170 million liquidation figure, while substantial, does not necessarily signal a market downturn but rather aligns with the typical response to year-end conditions.

Seasoned crypto enthusiasts recognize this pattern, where profit-taking and risk aversion can momentarily disrupt the market. Historically, as the New Year kicks off and normal trading volumes resume, the market tends to stabilize.

By mid-January, institutional and individual investors returning to active participation often contribute to the restoration of market equilibrium.

Taking a broader perspective, the overall upward trajectory of the market remains intact. The recent liquidations, although impactful, are unlikely to divert the general market direction.

The cryptocurrency ecosystem’s resilience is well-known, and the current wave of liquidations is viewed as another challenge testing this inherent attribute.


To conclude, the liquation of $170 M in Solana, Bitcoin, and Ethereum due to the cryptocurrency flash crash did not affect the market in general. The market is currently strongly continuing the upward trend. During holidays and the New Year season, the investors tend to cash out resulting in decreased liquidity. But this minor impact is balanced once Q1 starts. The market is positive towards the bullish upward trend and the expectation of 2024 is a major bull run resulting in larger gains.

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