Dogecoin Bulls See $60M Liquidations in Biggest Hit Since 2021

As an analyst with extensive experience in the crypto market, I find the recent liquidation of $60 million in long DOGE (Dogecoin) futures contracts an intriguing development. This event surpassed the liquidations for BTC (Bitcoin) futures, which is unusual given the broader market sell-offs and bearish sentiment.As a researcher studying market trends, I’ve observed an unexpected outcome during Monday’s trading session. Contrary to the general bullish sentiment towards Dogecoin (DOGE) futures, these positions performed worse than their Bitcoin (BTC) counterparts. This discrepancy resulted in the liquidation of approximately $60 million worth of long DOGE bets.

In simple terms, the DOGE price declined by over 10% during a significant sell-off of major tokens and bitcoin in Asian markets. The CoinDesk 20 Index, which represents the broader crypto market, has experienced a decrease of 3.4% within the past day.

In the recent time frame, losses from holding Bitcoin (BTC) for a long position amounted to approximately $47 million. The most significant losses, totaling around $76 million, were incurred by those who held an optimistic view on Ether (ETH). In aggregate, crypto investors experienced over $440 million in losses due to profit-taking and the strengthening US dollar, according to statements made by traders on Tuesday.

As a crypto investor, I’ve noticed that the meme coin market has taken a hit this month. Bitcoin’s price fluctuations have caused quite a ripple effect, leading to a general pullback in the meme coin sector. The anticipation of a single rate cut from the Federal Reserve has encouraged investors to shift their focus towards less risky assets, and meme coins like DOGE might bear the brunt of this trend as one of the larger players in the market.

As a researcher examining the data from Coinanlyze, I’ve discovered that nearly all Dogecoin (DOGE) liquidation events within the last 24 hours were triggered by long positions – representing bets on price increases. Conversely, short positions, which are wagers against the token, accounted for a mere $600,000 in liquidations.

Since May 2021, DOGE futures have seen their greatest volume with over $44 million in liquidations. Notably, this significant amount was transacted on Huobi, a well-known crypto exchange favored by traders primarily based in Asia.

The amount of open interest, representing outstanding futures contracts yet to be settled, has decreased by 16% to reach $600 million. Simultaneously, data from a long-short ratio indicator for DOGE futures reveals that traders are preparing for potential price drops as the ratio stands at 0.94 – signaling a predominantly bearish sentiment in the market.