Dogecoin and Ether Sink 9% Amid Bitcoin Sell-Off, Wiping Out $700M in Long Positions

Crypto Bloodbath: Bitcoin Plunge Below $80K Sparks $700M in Liquidations as Ether, Dogecoin Sink

A wave of forced liquidations hit the crypto market as Bitcoin (BTC) extended its downturn, dropping 4.5% below $80,000 and dragging major altcoins down with it. Ether (ETH) and Dogecoin (DOGE) were among the hardest hit, each plummeting 9% in the past 24 hours.

The sharp decline wiped out over $700 million in bullish leverage, with BTC long traders suffering $420 million in losses, while ETH longs saw $150 million liquidated. DOGE bulls were also caught off guard, losing $30 million. Other major tokens like Solana (SOL) and XRP shed 8% and 7%, respectively, as the broader CoinDesk 20 Index (CD20) fell more than 6.5%.

Market Jitters Force Liquidations, Drive Out Speculators

Bitcoin futures open interest took a significant hit, declining 7% to $45 billion, as traders scrambled to close positions amid margin calls.

“Traders are stepping back as the probability of a Federal Reserve rate cut fades. With strong job market data and expectations that February’s inflation report could come in hot, investors are adopting a risk-off stance,” said Nick Ruck, director at LVRG Research, in a message to CoinDesk.

Ruck noted that many traders may remain sidelined until clearer signals emerge from the Fed, suggesting that volatility could persist in the near term.

Global Market Turbulence Adds to Crypto Pressure

Crypto’s downturn coincided with fresh turmoil in global equities. The S&P 500 dropped 2% while the Nasdaq fell 3%, marking the worst one-day decline for U.S. stocks since September 2022. The sell-off was exacerbated by renewed fears over looming U.S. trade tariffs and recession risks following statements from former President Donald Trump over the weekend.

Tech stocks, particularly the ‘Magnificent 7’ group, took a massive hit, collectively losing $830 billion in market capitalization.

Meanwhile, the dollar’s strength, coupled with hawkish signals from the Federal Reserve—indicating fewer rate cuts than previously expected—has put further pressure on risk assets. Investors have increasingly shifted toward safe havens like gold and the Japanese yen, further weighing on crypto markets.

Is a Rebound on the Horizon?

Despite the widespread losses, some indicators suggest a potential short-term bounce. The Crypto Fear & Greed Index has plunged to 15, deep in the “extreme fear” zone—a level that has historically preceded market recoveries.

Singapore-based QCP Capital pointed to a possible shift in macro conditions that could provide relief for crypto.

“Amid the sell-off, we are seeing signs of easing in key areas. The 10-year Treasury yield has dropped by 60 basis points, and the U.S. dollar is starting to show signs of weakening—both of which have historically supported crypto and equities,” QCP said in a market report.

“Additionally, lower bond yields ease borrowing costs at a time when the U.S. government is facing significant refinancing needs, particularly as Trump’s proposed fiscal policies take shape,” the firm added.

While uncertainty remains, analysts suggest keeping an eye on Treasury yields and the U.S. dollar for clues on whether the market downturn is nearing exhaustion—or if more turbulence lies ahead.