Key Points:
- Over $1.33 billion (202.3 billion yen) in long positions were liquidated within 24 hours, marking a 100x increase compared to the previous day.
- Bitcoin prices dropped sharply, briefly reaching 14.3 million yen (＄94,620).
- Binance led the liquidation volumes, with $597 million in trades closed.
- Demand for cryptocurrencies in Japan tripled, with bitFlyer seeing a surge in new registrations.
- Donald Trump’s political support for crypto sparks speculation about a “Trump Bubble” in 2025.
Massive Liquidations Shake the Crypto Market
The cryptocurrency market faced a historic shake-up on December 10, 2024, with 24-hour long liquidations exceeding $1.33 billion (202.3 billion yen). This unprecedented figure was 100 times higher than the prior day’s total. Bitcoin (BTC), the world’s largest cryptocurrency, bore the brunt of this sell-off, with its value falling below 15 million yen (＄99,251) and briefly hitting 14.3 million yen (＄94,620).
The market instability primarily originated from excessive liquidation activity across major exchanges. Binance accounted for $597 million in liquidations, followed by OKX and ByBit, which saw $287 million and $298 million, respectively. Analysts believe this sell-off reflects the ongoing volatility and speculative trading behavior prevalent in the crypto market.
Japan’s Crypto Demand Surges Amid Market Turmoil
While global markets struggled with declining prices, Japan experienced a significant uptick in cryptocurrency interest. According to a recent report from Nikkei, domestic demand for cryptocurrencies has tripled. BitFlyer, Japan’s largest cryptocurrency exchange, witnessed a surge in new user registrations, further solidifying its position as a market leader.
This increased demand is partly attributed to the renewed optimism surrounding Bitcoin and other cryptocurrencies in light of Donald Trump’s projected victory in the 2024 U.S. presidential elections. His vocal support for crypto-friendly policies and appointments, including the establishment of the first crypto-focused office within the White House, have sparked optimism among traders and investors.
The Role of Political Influence in Crypto Sentiment
The potential “Trump Bubble” anticipated in 2025 adds an intriguing dimension to this market narrative. Trump’s commitment to fostering a crypto-friendly regulatory environment has already begun to influence market sentiment. His appointment of Paul Atkins, a known crypto advocate, as the new SEC chair, underscores this commitment.
Experts believe that Trump’s re-election could lead to the proliferation of Bitcoin ETFs and further adoption of blockchain technologies. This speculation, combined with the market’s heightened volatility, has created a fertile ground for both opportunities and risks.
A Global Shift in Crypto Dynamics
While Japan’s market showcases resilience and growth, the broader cryptocurrency ecosystem remains in flux. The delayed announcement of Bitcoin ETF earnings led by BlackRock has added uncertainty to the market. Investors are eager to see how institutional players will shape the industry’s trajectory in the coming months.
Future outlook
The crypto market’s recent volatility, underscored by Bitcoin’s steep decline and unprecedented liquidation levels, highlights the dynamic nature of this evolving asset class. As political and economic factors converge, the global cryptocurrency market stands at a critical juncture. Japan’s growing interest in digital assets and Donald Trump’s crypto-forward policies could serve as pivotal forces shaping the industry’s future. However, traders must remain cautious, as opportunities come hand-in-hand with inherent risks.
