Bitcoin Drop Triggers Over $530 Million in Long Liquidations
A significant pullback in crypto markets resulted in over $500 million in long liquidations, with bitcoin (BTC) falling from weekend highs. Key points include:
- Liquidations totaled more than $530 million in 24 hours; nearly $200 million from BTC futures and $170 million from ether (ETH) products.
- Major cryptocurrencies experienced declines: dogecoin (DOGE) and cardano (ADA) fell up to 7%, while solana (SOL), xrp (XRP), and BNB Chain's BNB dropped 5%-6%.
- The market shift reversed last week's rally, where ETH gained 40% and major altcoins achieved double-digit gains, leading to over $1 billion in short liquidations.
- Market downturn coincided with reports of a tariff truce between the U.S. and China, reducing trade tensions but affecting crypto sentiment.
- Futures open interest decreased by over $1.2 billion, indicating a sharp deleveraging as long traders exited their positions.
- Analysts highlight macroeconomic concerns, noting that the upcoming Federal Reserve meeting in June will be crucial for potential market recovery.
Jeff Mei, COO at BTSE, indicated that the Fed's decisions could influence Bitcoin's ability to surpass previous all-time highs and stimulate economic growth.