Crypto Bulls Suffer $580M Liquidations as Bitcoin Falls 8%; Ether, Solana, and Dogecoin Also Tumble

Crypto Bulls Suffer $580M in Liquidations as Bitcoin Plummets 8%; Ether, Solana, and Dogecoin Experience Significant Declines

Crypto Bulls Suffer– In the past 24 hours, major cryptocurrencies have plunged up to 20%. Early Asian trading hours saw movements from a wallet linked to Mt. Gox, which spooked traders and sent the market into a downward spiral, averaging a 10% drop.

Bitcoin (BTC) fell 8%, briefly dipping below $54,000 before a slight recovery. This move wiped out all gains since February. Ether (ETH) dropped over 10%, Solana’s SOL and Cardano’s ADA each fell 8%, and Dogecoin (DOGE) plummeted nearly 18%.

According to Coinalyze, this caused over $580 million in liquidations tied to long positions—bets on higher prices—making it one of the largest liquidation events this year. Bullish bets on Bitcoin and Ether alone saw losses exceeding $380 million. The largest single liquidation order occurred on Binance, involving an ETH trade valued at $18.4 million. Additionally, open interest, which reflects the number of unsettled futures bets, dropped 12%, indicating a withdrawal of funds from the market.

Liquidations happen when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. This occurs when a trader can’t meet the margin requirements for a leveraged position, essentially lacking the funds to keep the trade open.

The recent market turmoil was triggered by the defunct exchange Mt. Gox moving significant amounts of BTC to a new wallet, likely in preparation for creditor repayments. Mt. Gox is set to start distributing assets stolen in a 2014 hack this month, following years of delays. Repayments will be made in Bitcoin and Bitcoin Cash, potentially adding selling pressure to both markets.

Trading firm QCP Capital shared in a Thursday Telegram broadcast that they foresee a sluggish market in the coming months: We anticipate a subdued Q3 for BTC as the market remains uncertain around the supply from the Mt. Gox release.

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