Bitcoin, Ethereum, and Dogecoin Decline Sharply as Crypto Liquidations Surpass $900 Million
On Monday, major cryptocurrencies including Bitcoin, Ethereum, and Dogecoin experienced significant price drops, triggering a wave of liquidations exceeding $900 million in a 24-hour period. The downturn reflects growing market anxiety amid macroeconomic uncertainties and a notable large-scale Bitcoin sale.
Bitcoin Falls Below $110,000 Amid Whale Sell-Off
Bitcoin (BTC) slid below the $110,000 mark for the first time since early July, closing out the day at approximately $110,441—down 2.2% over the last 24 hours and more than 5% over the past week. This decline followed a massive Bitcoin sell-off on Sunday when a “whale” investor offloaded about 24,000 BTC valued at $2.7 billion. This significant supply influx intensified selling pressure, worsening the market dip.
Joe DiPasquale, CEO of crypto fund manager BitBull Capital, observed that the sale likely sparked the initial downturn but emphasized broader causes: “The bigger picture is one of thinning liquidity and skittishness around macro conditions. With hopes for interest rate cuts pushed further out and wobbling stock markets, crypto was vulnerable to a sharper move lower once heavy supply hit the market.”
Ethereum and Other Cryptos Also See Sharp Declines
Ethereum (ETH), the second largest cryptocurrency by market capitalization, fell 8% to around $4,375 on Monday after just reaching a new all-time high above $4,900 on Sunday. This drop highlights the volatile back-and-forth trading environment.
Other notable losses included:
- Dogecoin (DOGE) dropping more than 10% to roughly $0.208.
- Solana (SOL) falling 8.5% to $186, retreating from a six-month high set over the weekend.
- XRP declining nearly 6% to $2.85. These price movements contributed to a widespread sell-off across the crypto market.
$900 Million+ Liquidations Across Crypto Futures Markets
Data from CoinGlass reveals over $900 million in futures liquidations over the past day, with Ethereum futures accounting for approximately $320 million and Bitcoin at about $210 million. Most of the liquidated positions—around $817 million—were long positions, where traders had bet on price increases and were forced to close their positions as prices fell.
As of Monday, liquidations totaled roughly $895 million, nearing the psychologically important threshold of $1 billion, which some market observers deem possible before the month ends.
Macro Factors Weigh on Market Sentiment
The cryptocurrency market’s volatility coincides with investor caution surrounding upcoming U.S. economic data releases. Market participants eagerly await Friday’s Personal Consumption Expenditures (PCE) report, a key inflation indicator closely monitored by the Federal Reserve. Analysts predict the PCE will reveal an annual increase of 2.9% for July, slightly higher than June’s figures.
Additionally, The Conference Board’s consumer confidence index, expected on Tuesday, may further influence Federal Reserve policy expectations. Last week, Fed Chair Jerome Powell hinted at a potential interest rate cut—the first since December—providing a brief boost to risk assets including cryptocurrencies. However, uncertainty remains high as investors parse through mixed economic signals.
Conclusion
The recent sell-off underscores the sensitivity of crypto markets to large trades and macroeconomic developments. Bitcoin’s decline below $110,000 and Ethereum’s sharp pullback after setting record highs highlight the challenges facing cryptocurrencies amid fluctuating liquidity and economic outlooks. Traders and investors are closely watching upcoming U.S. economic data for clues about the Federal Reserve’s next steps and their potential impact on markets.
Price data sourced from Decrypt’s live crypto price feed.