- Bitcoin’s failure to maintain its $100,000 mark triggered a widespread market downturn, causing major cryptocurrencies like XRP, Dogecoin, and Cardano to experience significant losses.
- The market slide resulted in the liquidation of over $300 million in bullish bets, with smaller altcoins and meme tokens suffering the most.
The crypto market is facing a significant downturn, with Bitcoin’s (BTC) failure to sustain its recent gains sparking a wave of losses among major cryptocurrencies. As BTC fell by 2% from its six-figure mark during the Asian session, the ripple effects were felt across the market, leading to the liquidation of over $300 million in bullish bets.
Bitcoin’s Struggles Highlight Broader Market Weakness
Bitcoin’s failure to hold above the $100,000 level has raised concerns about the sustainability of the ongoing rally. After briefly crossing the six-figure milestone, BTC saw a sharp decline during European trading hours, falling by 2%. This drop had a cascading effect on the broader market, with major altcoins like XRP, Dogecoin (DOGE), and Solana’s SOL seeing declines of up to 5.5%.
Cardano Hit Hardest Amid Security Scare
While many coins faced losses, Cardano (ADA) was hit the hardest, suffering a steep 7% drop. This downturn came on the back of a security scare involving the Cardano Foundation’s X account, which was temporarily compromised over the weekend. This event sent shockwaves through the Cardano community and contributed to the token’s sharp decline.
$300 Million Liquidated as Longs Vanish
The market slide led to the liquidation of more than $300 million in long positions—bets made on rising prices. This liquidation was particularly severe in futures contracts tracking smaller altcoins and meme tokens. Notably, these altcoins saw higher losses than Bitcoin or Ethereum futures, indicating an unusual market dynamic where smaller, riskier bets were hit hardest.
Midcaps and the Broader Market Decline
The weakness in major cryptocurrencies also affected mid-cap tokens. According to data from Coingecko, midcaps dropped by as much as 10%. The CoinDesk 20, an index tracking the largest tokens by market cap, saw a significant 3.6% drop, reflecting the widespread market struggles.
As the crypto market grapples with this setback, traders and investors are left questioning whether the recent rally is sustainable or if the market is poised for further declines. The coming days will likely determine whether this drop is a temporary blip or the beginning of a larger correction.
