In the past 24 hours, bullish investors betting on rising cryptocurrency prices faced a significant setback, losing $770 million as Bitcoin dropped below $100,000. Major cryptocurrencies such as Solana (SOL) and Dogecoin (DOGE) fell by over 10%, while Ethereum (ETH), BNB, XRP, and Cardano (ADA) also experienced significant declines. The overall crypto Market cap decreased by 8.5%. Interestingly, the only token to gain was Jupiter (JUP), which rose by 3.5% after announcing a token buyback. The Market‘s volatility led to massive liquidations, with the largest being a $98.4 million Bitcoin trade, signaling a potential shift in Market sentiment and creating possible buying opportunities for traders.
Bitcoin’s Price Drop Prompted Major Losses in Crypto Market
In the last 24 hours, bullish bets on higher cryptocurrency prices took a hit, leading to a staggering $770 million in losses as Bitcoin’s price fell below the $100,000 mark. This sharp drop sparked a turbulent start to the week for major cryptocurrencies.
Major losses were recorded across popular coins, with Solana’s SOL and Dogecoin (DOGE) each suffering declines of over 10%. Other cryptocurrencies like Ethereum (ETH), BNB Chain’s BNB, XRP, and Cardano’s ADA also faced significant downturns, losing up to 9% of their value. Overall, the cryptocurrency Market cap decreased by 8.5%, especially noticeable by Monday afternoon in Asia.
Even tokens outside the top twenty were not spared from the chaos. Memecoin Pepe (PEPE), Layer 1 alternative Aptos (APT), Gate.io’s GATE, and AI creation platform Virtuals (VIRTUALS) all fell by as much as 18%. The only token showing resilience was Jupiter’s JUP, which gained 3.5% thanks to a strategic buyback of tokens on its trading platform.
As Bitcoin stumbled below $99,000 early Monday, traders began taking profits amid speculations ahead of the first U.S. Federal Open Market Committee (FOMC) meeting of the year. This loss in Bitcoin’s value was echoed in U.S. stock futures, which also declined after unexpected news concerning a competitor’s technological capabilities.
Liquidations in futures markets intensified as traders of Bitcoin-tracked products faced a loss of $238 million within 24 hours—most of which occurred during early European and Asian trading hours. In total, SOL and DOGE trades accounted for about $50 million in losses, while altcoins collectively saw a jab of $138 million.
The largest liquidation order amounted to $98.4 million on the HTX platform, illustrating the consequences of insufficient funds in a high-volatility Market. Liquidations can serve as a signal of an overstretched Market, potentially indicating that a price correction has occurred. In times like these, traders might view heavy liquidation as a buying opportunity, hoping for a price recovery once the selling pressure abates.
As the week unfolds, all eyes will remain on Bitcoin and other cryptocurrencies, as traders anticipate potential Market shifts following this tumultuous period. Stay tuned for more updates on the evolving cryptocurrency landscape.
What happened to Dogecoin and Ripple?
Recently, Dogecoin and Ripple prices dropped by 11%. This decline is part of a larger trend where many cryptocurrencies are facing losses.
Why are cryptocurrencies like Dogecoin and Ripple falling?
The drop in prices is due to a mix of factors, including Market corrections, economic news, and increased selling pressure. Investors are reacting to the overall Market situation, leading to more sell-offs.
What are bullish crypto liquidations?
Bullish liquidations happen when traders who expected prices to rise end up forced to sell their positions. This can happen when prices fall too much, leading to large losses.
How much money was liquidated in the last wave of sales?
Recently, over $770 million worth of crypto positions were liquidated. This means many investors lost their investments as prices dropped sharply.
Should I be worried about investing in Dogecoin or Ripple?
While price drops can be concerning, it’s important to remember that the crypto Market is very volatile. If you’re thinking of investing, consider your risk tolerance and do thorough research before making any decisions.
