
Crypto Chaos: Bitcoin's Plunge Triggers $500 Million Liquidation Spike as Dogecoin Dips 7%!
2025-05-13
Author: Ming
Crypto Markets in Turmoil!
In a dramatic turn of events late Monday, the cryptocurrency market faced a massive sell-off, leading to over $500 million in long liquidations. The tumultuous drop saw Bitcoin (BTC) retreat from its weekend highs, sending shockwaves through the trading community as investors adjusted to shifting U.S.-China trade dynamics.
Staggering Liquidations Strike!
According to data from Coinglass, over $530 million in leveraged positions were liquidated in the past 24 hours alone. Of that total, Bitcoin futures accounted for nearly $200 million, while Ether (ETH) products saw about $170 million in liquidations. For traders, this highlights the perilous nature of leveraging in a volatile market—liquidations occur when exchanges automatically close positions that cannot meet margin requirements.
Market Reactions: Dogecoin and More Take a Hit!
The major cryptocurrencies suffered significant losses, with Dogecoin (DOGE) and Cardano (ADA) each plummeting around 7%. Meanwhile, heavy hitters like Solana (SOL), XRP, and BNB from the BNB Chain saw declines ranging from 5% to 6%. This decline starkly contrasts with the previous week's excitement, during which ETH surged by an astonishing 40% alongside other altcoins.
From Euphoria to Caution!
Just a week ago, the market was experiencing a euphoric rally, resulting in over $1 billion in short liquidations—the highest since 2021. Bitcoin had even soared briefly past $104,000 before the momentum fizzled out. However, the optimism quickly faded as fresh news of a temporary tariff truce between the U.S. and China emerged, causing equities to perform well but creating uncertainty in risk-sensitive assets like crypto.
A Shift in Investor Sentiment!
As U.S. trading hours unfolded on Monday, the easing of tensions between the two superpowers may have tempered the bullish sentiment that had powered cryptocurrencies recently. With futures open interest across major exchanges declining by over $1.2 billion, it seems that traders are retreating as they reassess their positions in a rapidly changing financial landscape.
What's Next?
Market analysts are keeping a cautious eye on forthcoming events, particularly the upcoming Federal Reserve meeting in June. While the current flush of liquidations may reset the overly optimistic sentiment, investors remain anxious about what lies ahead in the cryptosphere.