Memecoin bulls braced for impact as the largest asset of this kind by market cap, Dogecoin, dropped by over 10%. $60 million in DOGE futures got wiped out as a result. Huobi accounted for more than $44 million of those liquidations.
Data revealed they were associated with longs – positions harnessed by users to speculate DOGE’s price rise. In contrast, only $600,000 worth of DOGE shorts, which users open to bet against the memecoin dropping in value, got liquidated in the past 24 hours.
This magnitude of long contract liquidations associated with DOGE has been unseen since 2021, leaving its legion of supporters and enthusiasts of the broader memecoin market concerned. BTC fared better, observing liquidations of $47 million despite its value dropping in the same ballpark as DOGE, percentage-wise. That left DOGE enthusiasts even more concerned. Ethereum longs took the biggest hit as contracts worth $76 million underwent liquidations.
The crypto market has dealt with turbulence for over a week as macroeconomic factors draw a wedge between investors and risky assets, moving them toward less risky ones. They awaited rate cuts from the Fed, but it will not transpire immediately. Investors do not indulge in assets like crypto during these periods.
BTC and other cryptos saw a price rise momentarily last week when inflation-related reports looked far better than expected. However, the gains did not account for further rallies. The Fed did not cut the interest rate despite the inflation reports. Other factors keeping BTC and crypto values down include the dollar performing strongly compared to other fiat currencies – the Euro witnesses hurdles due to political uncertainties in France caused by a snap election.
Moreover, BTC experiences resistance in its efforts to climb in value, with BTC ETF investors turning to profit-taking. Collectively, BTC ETFs saw net outflows of $146 million on Monday, followed by $580 million in outflows last week.
