TL;DR
- Market shock: Over $1.5B in leveraged crypto positions were liquidated in a single day, with Ether dropping sharply and Dogecoin leading altcoin losses as Bitcoin briefly slipped under $112,000 before recovering.
- Trader wipeout: More than 407,000 traders saw positions forcibly closed within 24 hours, creating cascading volatility that deepened the sell-off and marked one of the largest liquidation events in recent months.
- Macro tension: Uncertainty around Federal Reserve policy, combined with gold’s record surge, shifted investor sentiment toward traditional safe havens and away from riskier crypto assets.
Crypto markets reeled on Monday as more than $1.5 billion in leveraged positions were liquidated, triggering a sharp sell-off across major tokens. Ether and Dogecoin led the downturn, while Bitcoin briefly slipped below $112,000 before staging a modest recovery. The event marked one of the largest liquidation waves in months, underscoring the fragility of sentiment amid ongoing macroeconomic uncertainty.
Ether and Dogecoin Lead Losses
Ether, the second-largest cryptocurrency, fell 7% to around $4,000 after nearly half a billion dollars in long positions were liquidated. It was still down 6% over 24 hours, according to Coinglass data. Dogecoin slumped more than 10% to $0.23, leading losses among major tokens. Other altcoins, including Solana’s SOL, Cardano’s ADA, BNB Chain’s BNB, and Tron’s TRX, shed at least 5%. By Tuesday morning, CoinMarketCap data showed Bitcoin, which had dipped to $111,998, was last seen at around $112,000.
Over 400,000 Traders Liquidated
More than 407,000 traders were liquidated within 24 hours, the highest tally in recent months. Liquidations occur when leveraged positions are forcibly closed after prices move beyond margin thresholds. Such events often trigger cascading effects, amplifying volatility and deepening losses. Analysts note that spikes in long liquidations can signal panic bottoms, while short liquidations may precede rallies.
Macro Backdrop Adds Pressure
The sell-off unfolded against a backdrop of uncertainty surrounding U.S. monetary policy. Despite the Federal Reserve’s recent interest-rate cut, investors remain cautious. Nassar Achkar, chief strategy officer at CoinW, said the market’s trajectory depends heavily on upcoming economic data and Fed signals. He suggested Bitcoin’s dominance could persist, limiting upside for Ethereum and DeFi tokens despite their yield advantages.
Investors are closely watching U.S. PMI data, jobless claims, and Federal Reserve Chair Jerome Powell’s upcoming speech. A dovish tone could ease pressure on altcoins, while cautionary remarks may reinforce defensive positioning already evident in derivatives markets.
Gold Shines as Bitcoin Stumbles
Safe-haven flows into precious metals highlighted shifting investor dynamics. Gold surged to a record $3,721, extending its 43% gain this year. Silver also advanced 50% to near $44. In contrast, Bitcoin has lost 3.5% since the Fed’s rate cut, diverging sharply from gold’s momentum. The rotation suggests investors are hedging risk by moving capital into traditional safe havens while crypto markets digest heightened volatility.
