Crypto Liquidations Hit $900M: Bitcoin, Ethereum and Dogecoin Dip
Crypto liquidations topped $900 million within 24 hours, driving Bitcoin, Ethereum and Dogecoin prices down significantly. BTC fell 3.5% while ETH and DOGE slid around 4% and 5%, respectively, as forced deleveraging intensified. The spike in funding rates triggered margin calls and accelerated the sell-off across the market. Total crypto liquidations, including altcoins, exceeded $1.2 billion, underscoring persistent market volatility. Traders are advised to monitor funding rates, open interest and leverage levels for early signals of potential further declines.
Bearish
The surge in crypto liquidations and accompanying margin calls point to heightened bearish pressure in the short term. Historically, $500M–$1B liquidation events have triggered further price declines over the following days as forced selling begets more selling. Funding rate spikes signal that leveraged longs are under stress, often presaging deeper pullbacks. In the long term, such episodes can purge excessive leverage and set the stage for consolidation or renewed rallies, but traders should remain cautious. Key indicators—funding rates, open interest, and on-chain flows—will determine whether selling pressure abates or intensifies.