Bitcoin Slump Triggers $500M in Losses

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Bitget Academy2025/05/13 06:03

By:Bitget Academy

On Monday, the crypto market experienced a sharp decline, wiping out earlier gains and causing over $500 million in losses from long liquidations. This happened as Bitcoin dropped from its weekend highs, partly due to easing trade tensions between the U.S. and China. A “long liquidation” occurs when a trader who bet on prices rising is forced to close their position because they don’t have enough funds to cover the loss.

Bitcoin and Ethereum were hit the hardest, with nearly $200 million and $170 million in liquidations respectively. Popular cryptocurrencies like Dogecoin and Cardano fell around 7%, while Solana, XRP, and BNB dropped between 5–6%.

Just last week, the market had surged, with Ethereum up 40% and other coins making big gains due to short liquidations — the opposite of what just happened. But Monday's turnaround saw over $1.2 billion in futures positions wiped out, showing a fast exit by investors.

Analysts believe this dip may cool off the overheated market. Many are now focusing on the U.S. Federal Reserve’s upcoming June meeting, which could impact markets depending on interest rate decisions and economic outlook.

Source: CoinDesk

Futures Market Updates

In the past 24 hours, both BTC and ETH futures saw a drop in open interest, with ETH experiencing a steeper decline (-1.84%) compared to BTC (-0.76%). Trading volume surged for both assets, though BTC futures volume rose more sharply (+62.30%) than ETH's (+39.94%). Liquidations were higher for BTC, particularly on the long side, suggesting more aggressive bullish positioning was wiped out. Interestingly, both assets shared an identical long/short ratio of 48.97%/51.03%, indicating slightly bearish sentiment across the board. Funding rates remained low but positive.

BTC Futures Updates

Total BTC Open Interest: $66.73B (-0.76%)

BTC Volume (24H): $132.95B (+62.30%)

BTC Liquidations (24H): $143.44M (Long)/$54.82M (Short)

Long/Short Ratio: 48.97%/51.03%

Funding Rate: 0.0084%

ETH Futures Updates

Total ETH Open Interest: $27.93B (-1.84%)

ETH Volume (24H): $119.80B (+39.94%)

ETH Liquidations (24H): $118.46M (Long)/$53.85M (Short)

Long/Short Ratio: 48.97%/51.03%

Funding Rate: 0.0071%

Top 3 OI Surges

DEGEN: $34.08M (+238.32%)

GODS: $5.94M (+153.44%)

RATO: $606.39K (+99.35%)

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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