Crypto Market Sees $675M Liquidation Spree as Dogecoin Leads Losses

A wave of profit-taking and risk aversion slammed crypto markets late Monday, triggering over $675 million in liquidations—the heaviest since April—as traders rushed to lock in gains following a strong rally.

Long positions bore the brunt of the damage, with liquidations totaling $406 million in the past 24 hours. Short traders weren’t spared either, racking up $269 million in losses as prices seesawed sharply.

Bitcoin (BTC) traders suffered the biggest hit, with more than $333 million in long positions forcibly closed. Ether (ETH) followed with $113 million liquidated, while XRP saw $36 million wiped out. Solana’s SOL and Dogecoin (DOGE) also sustained losses, with about $14 million in liquidations each.

Dogecoin was the weakest performer among major tokens, tumbling over 7.6% on the day as speculative appetite faded. Bitcoin and ether also retreated, losing 3.1% and 2.6%, respectively, cooling off after a nearly week-long rally.

The largest single liquidation came from a hefty $98.1 million BTC/USDT long position on Binance, according to data from Coinglass.

Despite bitcoin hovering near record highs, some traders appear wary of chasing further gains. Elevated funding rates are making leveraged bets costly, and derivatives flows indicate a more cautious stance rather than aggressive bullish positioning.

Markets may be overdue for a pause after their recent surge, some analysts suggest.

“With BTC in uncharted territory, short-term resistance levels are tough to pinpoint,” wrote QCP Capital in a client note. “Funding rates remain elevated, and memories of February’s $2 billion liquidation still linger.”

Options data reflects cautious optimism, QCP noted. Although short-dated implied volatility has ticked higher, it’s still well below 2023 averages. Longer-dated risk reversals for September and December continue to favor calls, hinting at sustained bullish sentiment over the longer term, even as traders remain hesitant to pile into upside bets immediately.

Analysts are warning investors not to confuse strong momentum with a guaranteed path upward. While institutional demand and macroeconomic shifts continue to propel bitcoin higher, they also raise risks.

“The road to $150,000 by Q3 looks increasingly plausible, fueled by ETF inflows, supply constraints, and macro tailwinds like a weaker dollar and possible Fed rate cuts,” said Ryan Lee, chief analyst at Bitget, in a note to CoinDesk.

However, Lee cautioned that the market’s journey isn’t without potential setbacks: “Profit-taking, rate speculation, and geopolitical risks could prompt a short-term pullback, potentially dragging BTC into a $105,000–$115,000 consolidation range.”