$770M in Long Liquidations Hit Solana, Dogecoin, and XRP as They Drop 10% at the Beginning of the Week

Traders of Bitcoin-linked products suffered a substantial loss of $238 million in the past 24 hours, primarily occurring during the early European and Asian afternoon hours.

Bullish bets placed on rising cryptocurrency prices experienced a significant loss, with $770 million wiped out as bitcoin dropped below $100,000, causing several major cryptocurrencies to lose momentum during a volatile start to the week.

Solana’s SOL and dogecoin (DOGE) led the downward movement, each losing over 10%, while ether (ETH), BNB Chain’s bnb, XRP (XRP), and Cardano’s ADA fell by up to 9%. The total crypto market cap dropped by 8.5% as of Monday afternoon in Asia.

Tokens outside the top 20, including memecoin PEPE, the Aptos (APT) layer-1 blockchain, Gate.io’s GATE, and the AI-powered platform Virtuals (VIRTUALS), saw declines of up to 18%.

The only token to see a gain was Jupiter (JUP), which rose 3.5% over the past 24 hours following the announcement of a buyback of tokens from its open market, an initiative expected to lead to significant net buying volumes in the coming year.

Bitcoin dropped below $99,000 on Monday, as traders took profits ahead of the first U.S. Federal Open Market Committee (FOMC) meeting of the year. The drop mirrored declines in U.S. stock futures, with concerns surrounding the impact of China-based DeepSeek’s AI model on market sentiment.

Futures markets reflected these losses, with Bitcoin-linked products losing $238 million. Solana (SOL) and dogecoin (DOGE) options saw a combined loss of $50 million, altcoin-based products lost $138 million, and ether-related futures lost $84 million.

The largest liquidation of the day occurred on HTX, with a tether-margined Bitcoin trade valued at $98.4 million.

Liquidation occurs when traders don’t have enough funds to maintain their leveraged positions. In the volatile crypto market, this is common, especially when major price movements happen, as seen on Monday. Liquidations can offer valuable insights into market sentiment and positioning.

High liquidation volumes on price charts often indicate an overstretched market, with the potential for a price correction. These zones may act as support or resistance levels, as the lack of further selling pressure can cause price reversals.

Should the market continue its downward trend, short-sellers may increase their positions, while contrarian traders might view heavy liquidations as a buying opportunity, anticipating a price recovery as the sell-off momentum wanes.