Total Crypto Liquidations Hit $972.22 Million in 24 Hours: Ethereum, XRP, Dogecoin, and Solana Among the Most Impacted

The cryptocurrency market faced a massive liquidation event on June 6, marking the largest sell-off since February. A staggering $972.22 million was liquidated within 24 hours, with nearly $3 billion in long and short positions wiped out over the past 48 hours. This wave of liquidations disrupted several major cryptocurrencies, including Ethereum (ETH), Dogecoin (DOGE), Solana (SOL), and XRP.

Bitcoin and Ethereum Dominate Liquidation Volumes

Bitcoin (BTC) and Ethereum led the market in total liquidation volume, collectively accounting for 64% of the total liquidations. However, smaller-cap cryptocurrencies like Solana and Dogecoin experienced the highest liquidation rates relative to their market caps. This highlights the extensive use of leverage in these assets, making them more vulnerable to sharp market movements.

Overwhelming Long Liquidations

The majority of liquidations targeted long positions, with $875 million—approximately 89% of the total—coming from leveraged longs. Traders betting on price increases were caught off guard by a sudden spike in market volatility, primarily driven by external political developments in the U.S.

Political Turmoil Sparks Market Volatility

The trigger for this liquidation event was a sharp decline in crypto prices following a public fallout between U.S. President Donald Trump and Elon Musk, a prominent figure in the tech and crypto space. This political dispute rattled market sentiment, leading to significant price drops across major cryptocurrencies. Over the last 24 hours, Bitcoin fell to a low of $100,437, Ethereum dropped 7% to $2,387, and Solana plunged to $142. Meanwhile, Dogecoin, which is often associated with Musk’s influence, dropped over 20%, reaching a daily low of $0.1692.

Solana and Dogecoin: High Leverage, High Risk

The market downturn exposed the risks associated with high-leverage trading, particularly in assets like Solana and Dogecoin. Aggressive leveraged bets, combined with stop-loss triggers, created a cascading effect that intensified the liquidation wave. While Solana demonstrated some resilience and even outperformed Ethereum on certain metrics, Dogecoin remains heavily tied to Musk’s influence. With Musk’s political standing now under scrutiny, Dogecoin could face heightened volatility in the near future.

Tips for Navigating Volatile Crypto Markets

For investors and traders looking to navigate such unpredictable market conditions, consider the following tips:

  • Use Stop-Loss Orders: Protect your investments by setting stop-loss limits to minimize potential losses during sudden price swings.
  • Avoid Over-Leveraging: High leverage can amplify gains but also significantly increase risks. Trade cautiously, especially with volatile assets.
  • Diversify Your Portfolio: Spread your investments across multiple cryptocurrencies to reduce exposure to individual asset risks.
  • Stay Updated on Market News: Keep an eye on political and economic developments that can impact market sentiment.
  • Practice Risk Management: Only invest what you can afford to lose and maintain a long-term perspective.

The recent liquidation event serves as a reminder of the inherent volatility in the crypto market. By adopting prudent trading strategies and staying informed, investors can better position themselves to weather market fluctuations.

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