Memecoin Bulls Braced for Impact as Dogecoin (DOGE) Drops by Over 10%

$60 million in DOGE futures got wiped out as a result. Huobi accounted for more than $44 million of those liquidations.

Memecoin fans had a rough day on Monday as the largest asset of this kind by market capitalization, Dogecoin, dropped by over 10%. This triggered a wave of liquidations in the DOGE futures market, amounting to around $60 million. Data showed that the majority of these liquidations, over $44 million, occurred on the Huobi exchange.

According to the data, these liquidations were primarily associated with longs, which are positions taken by users to speculate on the rising price of DOGE. In contrast, only $600,000 worth of DOGE shorts, which users open to bet against the memecoin dropping in value, were liquidated over the past 24 hours.

This scale of long contract liquidations for DOGE has not been observed since 2021, raising concerns among its large community of supporters and enthusiasts within the broader memecoin market. BTC fared better, with liquidations totaling $47 million despite experiencing a drop in value within the same range as DOGE percentage-wise. This left DOGE enthusiasts even more concerned.

Among the top crypto, the biggest hit was taken by Ethereum longs, with contracts worth $76 million being liquidated. The crypto market has been dealing with turbulence for more than a week now as macroeconomic factors drive a wedge between investors and risky assets, pushing them toward less risky ones. They expected the Fed to cut interest rates, but that will not be happening anytime soon. During these periods, investors tend to move out of assets like crypto.

While BTC and other cryptos saw a momentary price rise last week as reports on inflation came in much better than expected, these gains were not enough to fuel further rallies. The Fed did not cut the interest rate despite the inflation reports. Other factors contributing to BTC and crypto values remaining down include the dollar performing strongly compared to other fiat currencies, with the Euro facing difficulties due to political uncertainties in France caused by a snap election.

Moreover, BTC is facing resistance in its attempts to climb in value, with investors in BTC ETFs turning to profit-taking. Collectively, BTC ETFs saw net outflows of $146 million on Monday, following $580 million in outflows last week.

News source：https://www.kdj.com/cryptocurrencies-news/articles/memecoin-bulls-braced-impact-dogecoin-doge-drops.html

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