LIGHT (Bitlight) fell 73.94% in 24 hours.

Gate News Bot news, on December 22, according to CoinMarketCap data, as of the time of writing, LIGHT (Bitlight) is currently priced at $0.99, having fallen 73.94% in the last 24 hours, with a high of $4.81 and a low of $0.90. The 24-hour volume reached $221 million. The current market capitalization is approximately $43 million, down $122 million from yesterday.

Bitlight Labs is dedicated to catalyzing the potential of the Bitcoin Lightning Network ecosystem and promoting the development of the RGB-Lightning field. As a member of the LNP/BP Association and a major contributor to the RGB protocol, Bitlight Labs advances native BitcoinFi pioneeringly by developing the native smart contract infrastructure for Bitcoin and the Lightning Network. In the field of the Lightning Network, Bitlight Labs is a key contributor, developing the RGB Lightning Network node (RLN) based on LDK to enable efficient and low-cost asset trading and transfers on Bitcoin. Furthermore, Bitlight Labs has developed a payment framework and applications for Bitcoin and stablecoin based on RLN, which will improve the efficiency of cross-border payments and AI agent settlements through Lightning Network stablecoins defined by RGB, realizing the vision of true real-time settlement in the sixth generation of payments. Bitlight Wallet is the first Bitcoin wallet to unify RGB and the Lightning Network, boasting impeccable security.

Recent Important News about LIGHT:

1️⃣ Leverage trading risk concentrated release triggers market panic On the morning of December 22, LIGHT experienced a severe flash crash, briefly dropping below $1. During this decline, the liquidation amount of LIGHT contracts across the network reached $7.64 million within 4 hours, ranking first in the entire network. This indicates that large-scale leveraged positions were forcibly liquidated as prices rapidly declined, further intensifying the downward pressure. The concentrated liquidations in the contract market suggest that the high leverage risks accumulated in the early stages were released in a short period, triggering significant price fluctuations.

2️⃣ The previous increase has accumulated downward pressure In the week before this significant fall, LIGHT showed a strong upward trend. On December 17, it closed at $1.55 with a 24-hour increase of 25.27%, and its market capitalization also grew from $36.6 million to $66.7 million in a short period. Such a steep upward curve, while accumulating huge technical correction demand, also attracted a large amount of chasing funds into the market. When market sentiment shifts, the loss risk faced by these funds that entered at high levels prompts them to quickly stop losses, amplifying the decline.

3️⃣ Market sentiment shifts from optimistic to cautious Compared to the previous optimistic expectations for the upgrade of the Lightning Network infrastructure and the product mainnet launch in 2025, this recent flash crash reflects a significant shift in market sentiment. Investors have revised their confidence in the project's medium-term prospects, leading to a repricing of the optimistic factors that previously supported prices, resulting in a substantial decrease in market risk appetite.

On the technical side, LIGHT has fallen from a high of $4.81 to around $0.90, with a decline of over 70%. The market capitalization has shrunk to $122 million, indicating a fundamental shift in the market's perception of the asset's value.

This message is not intended as investment advice; investors should be aware of market volatility risks.