Crypto Market Sees $500M in Long Liquidations as Bitcoin Slides
A sharp sell-off in the crypto market late Monday wiped out more than $500 million in long positions, reversing gains from a recent rally as Bitcoin dropped from weekend highs. The sell-off came as investors reacted to easing trade tensions between the U.S. and China.
According to data from Coinglass, over $530 million worth of long trades—bets that prices would go higher—were liquidated in the past 24 hours. Nearly $200 million of those came from Bitcoin futures, while Ethereum (ETH) futures accounted for around $170 million.
Liquidations happen when traders using leverage (borrowed funds) can't meet margin requirements, forcing exchanges to close their positions. This usually happens when the market moves sharply against their bets.
Major altcoins were hit hard by the drop. Dogecoin (DOGE) and Cardano (ADA) fell by as much as 7%, while Solana (SOL), XRP, and BNB dropped between 5% and 6%.
This downturn comes just after last week’s euphoric rally, where ETH surged 40% and other altcoins saw double-digit gains. That rally sparked over $1 billion in short liquidations—the largest since 2021—and briefly pushed Bitcoin past $104,000 before momentum cooled off.
The reversal in momentum was largely driven by macroeconomic news. Reports on Monday revealed a temporary tariff truce between the U.S. and China, with both sides agreeing to roll back some mutual levies and cooperate more on trade. While this development gave equities a boost, it appeared to dampen the "risk-on" sentiment that had been fueling the crypto surge.
Coinglass also reported that futures open interest across major exchanges dropped by over $1.2 billion, signaling a sharp reduction in leveraged bets as traders rushed to exit positions.
Analysts say this correction may help reset the overly optimistic market sentiment. All eyes are now on the U.S. Federal Reserve’s next policy meeting in June.
“Macro concerns are driving the market right now,” said Jeff Mei, COO at crypto exchange BTSE, in a message to CoinDesk. “The Fed’s next decision will be key to whether Bitcoin can break past its previous all-time high.”
Mei added that a supportive Fed stance could stimulate investment and lending, potentially helping the U.S. avoid a recession and fueling further crypto growth
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