Key Highlights
- Bearish traders betting against the market lost over $140 million in a single hour of trading.
- The sudden price spike triggered a chain reaction of forced buybacks across various altcoin contracts.
- Market dominance remains heavily skewed toward high-risk derivatives rather than direct asset ownership.
The cryptocurrency market saw nearly $143.3 million in liquidation as Bitcoin (BTC) and other major altcoins lost momentum ahead of the U.S. market opening on Monday. The overall market capitalization has seen a 1.10% increase.
As per CoinMarketCap data, Bitcoin is trading at $90,001 at the time of writing. Bitcoin’s sudden movement led to massive volatility in the altcoin market, with Ethereum (ETH) trading at $2,958, XRP reaching $1.92, while BNB is at $893, and Solana (SOL) at $128.
The price volatility comes as the crypto industry navigates through various key events, such as the impacts of the CoinBase-WhiteHouse legislative rift and the recent short squeeze, raising hopes of bitcoin reaching $100K and altcoin rotation.
1-hour liquidations reach $143.3 million
A few hours ago, crypto markets wiped out over $143.3 million, with ETH alone contributing nearly $4.75 million, followed by BTC at $3.43 million, along with XRP, DOGE, and ADA, as recorded by The Crypto Times snapshot above.
According to the latest data from CoinGlass, Hyperliquid is sitting among the top platforms in market liquidations, contributing $123 million. This shows the perpetual DEX’s increasing popularity among a growing user base, echoing shrinking trust in centralized exchanges.
Volatility as market closes
This case is unique since the weekly market close on Friday in the U.S. usually brings volatility into cryptocurrencies, which most of the time witness a downtrend. While most of the narratives have cooled down and investors are awaiting the regularity and clarity in the US, the sell-off is likely due to short-term traders rethinking their strategies and exiting the market.
The market remains highly sensitive to regulatory friction, particularly following the standoff between Coinbase and the White House over the Senate’s crypto market structure bill. While leveraged traders were being wiped out, Coinbase CEO Brian Armstrong publicly rejected the proposed legislation, citing “bad” provisions, including a de facto ban on tokenized equities and restrictive DeFi surveillance, that he claimed would be worse than the current status quo.
This “rug pull” on the administration led the White House to threaten a total withdrawal of support for the bill unless a compromise is reached on stablecoin yields, adding a layer of political uncertainty that likely exacerbated the volatility seen in recent hours.
Also Read: Bitcoin Eyes $100K as Crypto Market Triggers Short Squeeze
