Bitcoin, Ether Drop Spurs $500M in Liquidations
Monday’s trading session saw crypto futures traders lose over $500 million in liquidations positions as steep volatility impacted highly leveraged longs and shorts, with some majors dropping as much as 12%.
Bitcoin $BTC whipsawed from $43,000 to as low as $40,300, data shows, leading drops across major tokens such as Chainlink $LINK , Cardano’s $ADA and Solana’s (SOL), which dropped over 8% before slightly recovering.
Generally riskier bets shiba inu (SHIB) and dogecoin (DOGE), two dog-themed meme tokens, fared slightly better with a 5% drop. Meanwhile, BNB Chain’s BNB, Avalanche’s AVAX, and Celestia’s TIA showed strength with gains of as much as 20% – unaffected by weakness in bitcoin.
Nearly $475 million in longs, or bets on higher prices, and $73 million in shorts, or bets against, booked losses amid a general unwinding of leveraged bets as high funding rates set the stage for a shaky market environment.
Data shows that most liquidations took place on OKX at $190 million, followed by Binance at $148 million and Huobi at nearly $60 million.
The largest single liquidation order happened on Bitmex, a chainlink (LINK) futures position that was worth over $33 million.
