Bitcoin News Today: Bitcoin Plunge Triggers $537M in Long Liquidations as Market Volatility Intensifies

Bitcoin's sharp drop below $86,500 on Dec. 15 triggered a massive wave of long liquidations on centralized exchanges, with over $537 million in positions wiped out across the crypto market. Long positions accounted for roughly $450 million of the losses, with Bitcoin alone seeing more than $115 million in liquidations according to data. The selloff pushed Bitcoin closer to a critical support level at $84,000, where further downside could trigger another $531 million in liquidations, according to Coinglass data as reported.

The drop followed a volatile week of trading as investors braced for key U.S. macroeconomic data releases. At the time of writing, Bitcoin was trading near $86,300, down about 3% over the past 24 hours. Ether (ETH) and XRP also fell, with ETH dropping 3.7% to $2,960.

The total crypto market cap hovered near $3 trillion, with selling pressure evident across most major tokens.

Concerns over market manipulation intensified as on-chain analysts and traders accused major players of coordinated selling. DeFiTracer claimed Binance and Wintermute were dumping large amounts of Bitcoin, while others alleged exchanges and funds were "aggressively dumping" the asset. However, TheStreet Roundtable noted it could not independently verify these claims as reported. The accusations highlight growing tensions in an already fragile market.

Market Reactions and Regulatory Concerns

The sudden volatility sent shockwaves through the crypto market, with traders reacting quickly to shifting sentiment. TheStreet reported that social media platforms were flooded with accusations and counter-accusations regarding the cause of the selloff, with some blaming exchanges for manipulating prices. Others argued the decline was a result of routine liquidity flows and user-driven selling.

Meanwhile, in South Korea, Finance Minister Koo Yun-cheol held an emergency inter-agency meeting to address foreign exchange market volatility as reported. The Korean won had approached the 1,500 level against the U.S. dollar, prompting officials to evaluate possible policy responses. The move underscored the global interconnectedness of crypto markets and traditional financial systems.

Macroeconomic and Geopolitical Influences

The uncertainty in the crypto market is further compounded by shifting macroeconomic expectations. The Bank of Japan (BOJ) signaled it may begin selling portions of its ETF holdings as early as January, marking a gradual retreat from years of ultra-loose monetary policy. Analysts warned that such a move could impact the yen carry trade, where investors borrow cheap yen to invest in higher-yielding assets. In a separate but related development, the UK Supreme Court rejected an appeal by BSV Claims Limited, narrowing a $13 billion lawsuit against crypto exchanges. The court ruled that exchanges are not liable for speculative losses caused by delisting tokens, reinforcing the idea that market forces-not exchanges-determine asset values as confirmed. The decision is seen as a key precedent for future legal disputes in the crypto industry.

Implications for Investors and Exchanges

Investors are increasingly cautious as they navigate a landscape of heightened volatility and regulatory uncertainty. The recent HashKey Group IPO in Hong Kong represents a potential turning point for the region's crypto ecosystem. The exchange plans to raise up to $215 million in its initial public offering, signaling a shift toward a more institutionalized and regulated approach to digital assets according to reports. If successful, the IPO could set a benchmark for other crypto firms seeking to go public.

For now, the crypto market remains on edge as investors await key economic data from the U.S. and monitor developments in Japan and South Korea. The next move in Bitcoin's price will be critical in determining whether the market can stabilize or if further liquidations will push prices lower. As the debate over market manipulation continues, the focus remains on transparency and regulatory clarity-key factors in restoring confidence in the digital asset space.