Dogecoin faced liquidations of USD $60 million amid 10% drop – DiarioBitcoin
By Hannah Perez
Dogecoin traders in the derivatives market reportedly saw their worst sell-offs in 3 years as the memecoin price slid into a broad-based downtrend.
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- Liquidation waterfall for Dogecoin is the largest since May 2021
- Broader cryptocurrency market faces liquidations of more than $400 million in 24 hours
- Bitcoin sank towards the $65,000 area, but DOGE lost more percentage wise
The memecoin with the most popular canine face in the cryptocurrency market faced a wave of liquidations amid a sharp price drop that spread throughout the ecosystem.
The operators of Dogecoin (DOGE) in the derivatives market has seen liquidations of USD $60 million in the last 24 hours, according to data from CoinGlass. Virtually all of the liquidations, or just over $59 million of the total, corresponded to long leveraged positions, that is, bets on higher prices.
The cascade of liquidations, which according to CoinDesk were the highest for DOGE since May 2021, came amid a 10% price pullback for the memecoin. Dogecoin It sank to a low of $0.117 overnight on Monday before a modest recovery and then settling as high as $0.15 a week ago.
The bearish price movement was widespread in the market, with Bitcoin (BTC) retreating to the USD $65,000 area to a 2-month low and several major cryptocurrencies replicating the trend. The global market capitalization of digital currencies has fallen 2.3% in the last 24 hours.
This led to broader liquidations of more than USD $420 million for the cryptocurrency market in the period, the vast majority of which were long positions. Bitcoin alone has experienced liquidations of almost 68 million dollars, with Ethereum (ETH) surpassing it with liquidations amounting to USD $80 million, according to the same data source.
In the last 24 hours, 158,492 operations were settled, with a total settlement of USD $428.86 million, according to CoinGlass.
Liquidations occur when a service provider forcibly closes a trader’s leveraged position due to margin shortfalls. In other words, traders’ positions are liquidated when they lack sufficient funds to keep said trade open, and it occurs when market movements disfavor the trader’s bet.
Economic indicators in the US affect the market
The cryptocurrency market has turned bearish since the US Federal Reserve (FED) decided to keep benchmark interest rates the same, and said in its forecast that it anticipated making a single cut at the end of 2024, instead of the multiple rate cuts that participants and investors expected.
Readings of persistent inflation and low expectations that the FED will relax its monetary policy in the coming months have put downward pressure on risk assets. Digital currencies have been affected, and meme-inspired cryptocurrencies in particular have recorded losses.
“The meme coin market has seen an overall pullback this month as Bitcoin prices face pressure“said Lucy Hu, senior analyst at Metalphaas cited CoinDesk in a report today. Hu added:
The expectation of a rate cut by the Federal Reserve has led investors to divert from risky assets to less risky ones, and DOGE may suffer as one of the largest meme coins on the market.
DOGE changes hands around $0.12 at press time, while BTC is trading at around $65,400 at press time.
Article by Hannah Estefanía Pérez / DailyBitcoin
Picture of Unsplash
WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.
