XRP, SOL Drop Sharply 14% As Crypto Bulls Liquidate 800 Million USD

Futures contracts tied to major tokens have seen over $840 million liquidated in the past 24 hours as the price of bitcoin (BTC) fell sharply, resulting in losses among major tokens, with some dropping nearly 14%. CoinGlass data shows that bitcoin traders betting on higher prices have lost over 322 million dollars, while traders betting on ether (ETH) have lost nearly 290 million dollars. Smaller alternative tokens less than (altcoin) have recorded nearly 400 million dollars in liquidation — with futures contracts tracking xrp (XRP) and Solana's SOL witnessing an unusually high accumulated liquidation of 80 million dollars.

BTC fell below $77,000 by the end of Tuesday, marking the worst start to a historically bullish month, with ether (ETH) dropping 15% to $1,500. SOL, XRP, and dogecoin (DOGE) have fallen by up to 15% before a slight recovery in the early morning in Asia, with BNB of the BNB Chain holding relatively strong with a 6% decline. The plunge of the major coins is reflected in the mid-cap coins and smaller tokens — all of which have dropped more than 10-20% according to CoinGecko. Data shows that nearly 86% of all futures bets are increasing in price. Traders are positioning for higher prices in the coming weeks with the expectation that current developments may have already been priced in and the market could see a short-term recovery. Liquidation occurs when the exchange is forced to close the trader's leveraged position because the trader does not meet the margin requirements. Large-scale liquidation can indicate the extremes of the market, such as panic selling or buying in. A series of liquidations may suggest a market turning point, where prices may soon reverse due to an overreaction in market sentiment. Global stocks and risk assets like bitcoin were impacted on Monday as investors remained fearful of the fallout from Trump's tariffs, causing U.S. futures to fall by about 5% when trading resumed after the weekend. Hedge fund billionaire Bill Ackman has urged the president not to engage in an "economic nuclear war" but instead to "pause" on Monday.