Futures tied to major tokens have caused losses among major tokens, some down almost 14% as Bitcoin (BTC) plummeted in a long liquidation of over $840 million over the past 24 hours.
Coinglass data shows Bitcoin traders have bet on a higher price, exceeding $322 million, while Ether (ETH) has lost nearly $290 million. Small Altcoins track futures tracking XRP (XRP) and Solana’s Sol, and see an unusually high cumulative liquidation of $80 million.
BTC slid below $77,000 late on a worst-start and historically bullish Monday, bringing Ether (ETH) down 15% to $1,500.
SOL, XRP, and DogeCoin (DOGE) slipped as much as 15%, recovering slightly in Asian morning hours, while BNB chain BNB has become relatively strong with 6% slides. The major’s dive was reflected in the midcap and smaller tokens. Everything shows a drop of over 10-20% according to Coingecko.
Data shows that nearly 86% of all futures bets are bullish. Traders were positioning higher priced prices over the coming weeks based on expectations that the current Ongo was priced and that the market could find short-term relief.
Liquidation occurs when an exchange forces a trader’s leveraged position because the trader cannot meet the margin requirements.
Large-scale liquidation can show extremes of the market, such as panic sales and purchases. A cascade of liquidation may suggest a market turning point where price reversals may be imminent due to overreactions of market sentiment.
Global stocks and risky assets such as Bitcoin hit Monday, bringing US stock index futures down around 5% as investors continue to fear fallout from Trump’s tariffs.
Hedge fund billionaire Bill Ackman urged the president not to go through an economic “nuclear war” and instead called a “timeout” on Monday.