XRP Hits Astonishing 1,694,200% Liquidation Imbalance, Vitalik Buterin Breaks Silence on Ethereum Outage, $185 Million in Bitcoin Exits Binance in Minutes – Crypto News Digest

XRP longs suffer 1,694,200% liquidation imbalance after minor price dip

A small 1.43% dip in the price of XRP was enough to blow up long positions and print a wild 1,694,200% liquidation imbalance in just one hour.

• XRP price drop. A mild 1.43% XRP price drop triggered a massive long-side wipeout, creating a 1,694,200% liquidation imbalance in a single hour.

A small 1.43% dip in the price of XRP was enough to blow up long positions and print a wild 1,694,200% liquidation imbalance in just one hour, showing how euphoric bullish traders became on the bounce.

Despite the overall uptick in the price, the cryptocurrency market remains in a fragile state, as evidenced by the Fear & Greed Index, which currently sits at 27 — fear. The derivatives market, especially the liquidation heatmap, is perhaps the best indicator of what is happening in crypto right now. CoinGlass’s heatmap recently demonstrated the pitfalls of positioning, with XRP emerging as a stark example.

• XRP bulls take hit. Long positions accounted for nearly all losses

Over that hour, the total liquidated leveraged positions on XRP derivatives amounted to $169,430, which is not a large sum compared to the $4.52 million liquidated overall during this period. However, the breakdown is astonishing: less than $10 came from liquidated shorts, and longs lost every other cent. That is an imbalance worth 1,694,200% printed in just the last hour.

Ethereum sees 23% of network go offline after Prysm client bug

A bug in an Ethereum consensus client on the mainnet caused approximately 23% of the Ethereum network to go offline.

• ETH outage. A bug in the Prysm consensus client caused roughly 23% of the Ethereum network to go offline early Thursday.

An issue with the Prysm consensus client on mainnet saw about 23% of the Ethereum network going offline. In the early hours of Thursday, the Ethereum Foundation alerted the community about an issue with the Prysm consensus client on mainnet, urging node operators to reconfigure their CL nodes. This only affected those utilizing Prysm clients, with other network clients unaffected.

In a confirmation tweet, Ethereum client Prysm stated that it had identified the issue and promised a quick workaround. It urged dependent nodes to disable the Prysm client. Commenting on the data presented, Sassal noted it was accurate, with about 23% of the network going offline due to a bug with Prysm.

• Buterin’s response. Vitalik Buterin addressed concerns, saying occasional loss of finality is not alarming and explained that finality only matters for ensuring blocks cannot be reverted.

Ethereum creator Vitalik Buterin weighed in on the discussion, dispelling such fears. “Nothing wrong with losing finalization once in a while imo,” Buterin said.

The Ethereum creator shed further light on the context of finalization, saying: “Finalization is for when we’re really sure a block won’t be reverted.” Buterin puts to rest concerns regarding the Prysm incident, saying, “If finality delays a few hours when a major client has a bug, that’s fine. The chain keeps going during that time. The thing to avoid is finalizing the wrong thing.”

Bitcoin whales withdraw over 2,000 BTC from Binance 

Bitcoin remains on the upside as whales continue to move tokens in major buy attempts.

• New BTC buys. Whale Alert tracked two major withdrawals on Dec. 5 from Binance totaling 2,000+ BTC, worth $185.16 million.

After the rapid price resurgence witnessed in the last few days, Bitcoin has slowed down on its daily price surge but has retained its position on the upside. While these positive movements have seen the Bitcoin ecosystem witness soaring optimism, whales have continued to scoop up the token amid rising demand from retail and institutional investors.

On Thursday, December 5, on-chain tracking platform Whale Alert identified massive Bitcoin withdrawals involving over 2,000 BTC, in suspected large buying activities from the world’s largest cryptocurrency exchange, Binance.

According to data provided by the tracker, the Bitcoin transfers, which happened in two separate transactions in batches of 1,000 BTC each, were worth a combined total of $185,165,469.

• Bullish sign. These movements are being interpreted as large-scale buying activity rather than routine outflows.

The move, which has come at a time when Bitcoin has continued to see strong daily gains, has sparked interest across the market, signaling renewed optimism and shifting stances on Bitcoin’s long-term price outlook.

With the large Bitcoin withdrawals from Binance coinciding with the crypto market’s positive momentum, it appears that whale activities are growing, and it has contributed significantly to the asset’s price resurgence.