Bitcoin Drops 8%, Ether, Solana, and Dogecoin Plunge results crypto bulls Face $580M liquidations
Crypto majors dropped as much as 20% in the past 24 hours, triggered by movements from a Mt. Gox-linked wallet that spooked traders in early Asian hours, causing the market to spiral down 10% on average.
Bitcoin (BTC) fell 8% to briefly dip below $54,000 before slightly recovering, wiping out all gains since February. Ether (ETH) dropped more than 10%, Solana’s SOL and Cardano’s ADA fell 8%, and Dogecoin (DOGE) plunged nearly 18%.
According to Coinalyze data, this led to over $580 million in liquidations tied to long positions, marking one of the largest such events this year. Bullish bets on Bitcoin and Ether collectively recorded over $380 million in losses. The largest single liquidation order occurred on Binance—a $18.4 million ETH trade. Additionally, open interest, or the number of unsettled futures bets, dropped 12%, indicating capital was leaving the market.
Liquidations happen when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin, occurring when a trader cannot meet the margin requirements for a leveraged position.
The market downturn followed as the defunct exchange Mt. Gox moved significant amounts of BTC to a new wallet, possibly preparing for creditor repayments. Mt. Gox is set to start distributing assets stolen from clients in a 2014 hack this month, after years of postponed deadlines. Repayments will be made in Bitcoin and Bitcoin Cash, potentially adding selling pressure to both markets.
Trading firm QCP Capital stated in a Thursday broadcast on Telegram that they expect a dim market in the coming months: “We anticipate a subdued Q3 for BTC as the market remains uncertain around the supply from the Mt. Gox release.”
