Market Turmoil Hits Major Cryptocurrencies
The crypto market experienced a sharp downturn, with Dogecoin (DOGE) and Ripple (XRP) plunging over 11% as bullish liquidations crossed $770 million. Solana (SOL) and other major altcoins also saw significant losses, dropping up to 10% in a volatile start to the week.
Key Highlights:
- $770 million in long positions liquidated, nearing January's monthly high.
- BTC, ETH, SOL, DOGE, XRP among top losers, with market cap down 8.5%.
- Jupiter’s JUP was the sole gainer (+3.5%) due to token buyback news.
Liquidation Breakdown and Market Impact
Heavy Losses Across the Board
- Bitcoin (BTC) fell below $99,000**, triggering **$238 million in BTC futures liquidations.
- Altcoins: SOL and DOGE futures lost $50 million**, while ETH-tracked products shed **$84 million.
- The largest single liquidation: A $98.4 million BTC trade on HTX.
👉 Explore real-time crypto liquidation data
Why Liquidations Matter
Liquidations occur when leveraged trades collapse due to insufficient funds. High-volume events like this often signal:
- Overextended markets: Corrections may follow.
- Potential reversals: Price-chart zones with heavy liquidations can act as support/resistance.
- Contrarian opportunities: Traders may buy the dip expecting recovery.
Behind the Sell-Off: Key Drivers
- Profit-Taking Ahead of FOMC: Traders cashed out before the U.S. Federal Reserve meeting.
- DeepSeek AI Disruption: News about China’s DeepSeek challenged OpenAI’s dominance, spooking tech-linked assets.
- Global Market Ripple Effects: U.S. stock futures dipped, amplifying crypto’s decline.
FAQ Section
Q: What caused Dogecoin and XRP to drop suddenly?
A: A combination of profit-taking, leveraged position unwinding, and broader market uncertainty triggered the sell-off.
Q: Are these liquidations a bearish signal?
A: Not necessarily. While large liquidations indicate volatility, they can also reset overleveraged markets, paving the way for stability.
Q: Should I buy the dip?
A: Assess risk tolerance. Contrarian traders see value here, but further declines are possible if sell momentum persists.
👉 Learn how to navigate crypto volatility
Strategic Takeaways
- Watch BTC’s $100k level: A hold above this psychologically key mark could restore confidence.
- Altcoin resilience: Tokens like JUP show selective strength amid chaos.
- Leverage caution: High liquidation volumes underscore the risks of overexposure.
Data sourced from Coinglass and HTX. Analysis by Shaurya Malwa, CoinDesk’s Asia markets lead.
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