Bullish bets on higher crypto prices lost $770 million in the past 24 hours as bitcoin fell below $100,000, causing some majors to quickly lose momentum in a Bloody start to the week.
Solana’s SOL and dogecoin (DOGE) fell more than 10%, leading to losses among the majors, while BNB Chain’s ether (ETH), bnb, xrp (XRP) and ADA Cardano fell as much as 9%. The overall market capitalization fell 8.5% on Monday afternoon in Asia.
Tokens outside the top 20 and in different sectors showed similar woes, with memecoin pepe (PEPE), Aptos (APT), layer 1 newcomer GATE from Gate.io and AI agent creation platform Virtuals (VIRTUALS) losing up to 18%.
Jupiter’s JUP was the only token in green with a 3.5% gain over the past 24 hours following a decision to buy back tokens on the open market from fees generated on its trading platform – which could equating to hundreds of millions in net. buy volumes in a year.
Bitcoin fell below $99,000 early Monday as traders took profits ahead of the first U.S. FOMC meeting this year. It followed losses in U.S. stock futures, which fell as traders digested information about the cost and capabilities of China-based DeepSeek, threatening an otherwise expensive narrative driven by OpenAI.
Futures markets reflected these losses, with commodity traders tracking BTC losing $238 million over the past 24 hours, mostly in the early afternoon in Europe and Asia. SOL and DOGE bets lost a combined $50 million, altcoin-tracked products lost $138 million, and ether-tracked futures lost $84 million.
The largest liquidation order occurred on HTX, a margined BTC trade valued at $98.4 million.
Liquidation occurs when a trader does not have sufficient funds to keep a leveraged trade open. The high volatility of the crypto market means that liquidations are commonplace, although major events such as Monday’s can provide actionable clues to improve sentiment or market positioning.
Liquidation can signal an overly tight market, indicating that a price correction has occurred, while areas of the price chart with high liquidation volumes can serve as support or resistance levels where the price could move further. reverse due to the absence of additional selling pressure from liquidated positions.
However, if the market continues to fall, those with short positions could see this as validation, potentially increasing their bets. Conversely, contrarian traders might view a massive selloff as a buying opportunity, expecting a price recovery once the selling momentum subsides.