Dogecoin Sees Biggest Liquidations Since 2021, $60 Million in Longs Flushed Out

Meme coin bulls braced for a shock as Dogecoin, the largest such asset by market cap, fell by more than 10%, resulting in the loss of $60 million in DOGE futures, of which more than $44 million was attributable to Huobi.

The data revealed that these were related to longs, positions that users leveraged to bet on DOGE’s price rising. In contrast, shorts on DOGE, which users opened to bet on the meme coin’s value falling, were liquidated just $600,000 worth in the past 24 hours.

The scale of liquidation of long contracts related to DOGE has not been seen since 2021, worrying supporters and enthusiasts across the meme coin market. BTC fared better, seeing $47 million in liquidations despite dropping in value to the same extent as DOGE in percentage terms. This has further alarmed DOGE enthusiasts. Ethereum longs were hit the hardest with $76 million worth of contracts liquidated.

The cryptocurrency market has been in turmoil for over a week as macroeconomic factors have created a divide between investors and risky assets, driving investors to lower-risk assets. Investors have been waiting for the Fed to cut interest rates, but that is not likely to happen anytime soon. Investors are not going to turn to assets like cryptocurrencies at a time like this.

Last week, BTC and other cryptocurrencies saw a temporary price rise after inflation-related reports were much better than expected. However, this rise could not explain further gains. The Fed did not cut interest rates despite the inflation report. Other factors driving the price of BTC and cryptocurrencies lower include the dollar performing well relative to other fiat currencies, and the euro struggling with political uncertainty following France’s surprise general election.

Moreover, BTC has faced resistance to higher prices, which has led BTC ETF investors to take profits. Overall, BTC ETFs saw net outflows of $146 million on Monday, following outflows of $580 million last week.

Image courtesy of KNFind from Pixabay

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