Bitcoin, Dogecoin, XRP and Solana face double-digit losses, cryptocurrency market liquidation hits $1.2 billion
Cryptocurrency prices took a major hit, with Bitcoin, Ethereum, XRP, Dogecoin, and Solana all suffering significant losses. After briefly hitting all-time highs above $108,000, Bitcoin fell 7% in a single day to $97,000. Ethereum is down nearly 12%, trading at $3,422, while XRP is similarly down, down 11% to $2.22. Popular emoji coin Dogecoin plunged 20% to $0.31. Solana, another major altcoin, fell below the $200 mark, falling 12% to $191. These losses are part of a larger correction across the cryptocurrency market, with the industry as a whole down 9%.
Federal Reserve Chairman Jerome Powell’s recent comments about inflation forecasts for 2025 spooked the market, and a recession ensued. Powell’s comments that inflation could be higher than expected and that interest rates could remain high for an extended period of time led to a broad sell-off in risk assets, including cryptocurrencies. Meme coins like Dogecoin, known for their sensitivity to macroeconomic news, have been particularly hard hit. The price of Dogecoin plummeted 12.4%, and the trading volume surged 67%, which shows the panic of holders. Despite this, Dogecoin remains one of the largest cryptocurrencies by market capitalization, worth $46.6 billion.
The market also saw massive liquidations, with more than $1.2 billion worth of cryptocurrency positions wiped out in just 24 hours. Long positions accounted for the majority of liquidations, totaling $1.07 billion. The largest single liquidation order that occurred on Binance was worth nearly $16 million. Additionally, Binance saw $83 million in outflows, indicating broader selling pressure across exchanges.
Other cryptocurrencies, including Ripple and Cardano, also suffered significant losses. For example, XRP is down 10%, while Cardano is down 15.7%. These declines are part of a broader recession affecting much of the altcoin market. Meme coins such as Shiba Inu and Bonk also saw significant declines, down 23.3% and 22.5% respectively.
Despite the sell-off, some altcoins are still gaining attention. One notable exception is Fartcoin, a meme coin that is up 71% over the past week and 323% this month. However, these gains were minimal and the overall sentiment in the cryptocurrency market remains bearish. With Bitcoin falling below $100,000 and the broader market showing signs of fragility, analysts are keeping a close eye on further developments.
