Cryptocurrency Market Takes a Hit: DOGE and XRP Prices Plummet by 11% Amid $770 Million in Crypto Liquidations
In a tumultuous start to the week, the cryptocurrency market witnessed a massive sell-off, resulting in significant losses for traders across the board. The prices of popular cryptocurrencies such as Solana, Dogecoin, and XRP plummeted by over 10%, leading to a collective loss of $770 million in long liquidations within a 24-hour period.
The downward spiral began early on Monday, Jan 27, 2025, at 7:51 a.m. UTC, as bitcoin dipped below the $100,000 mark. This drop triggered a wave of bearish sentiment, causing major cryptocurrencies to lose momentum rapidly. Solana’s SOL and Dogecoin (DOGE) were among the hardest-hit, experiencing double-digit declines, while other major coins like ether (ETH), BNB Chain’s BNB, XRP, and Cardano’s ADA also saw losses of up to 9%.
Overall, the market cap of cryptocurrencies plunged by 8.5% during the Asian afternoon hours on Monday. This widespread downturn was not limited to the top twenty tokens, as smaller projects such as memecoin Pepe (PEPE), Aptos (APT), Gate.io’s GATE, and Virtuals (VIRTUALS) also suffered losses of up to 18%.
Despite the market-wide decline, Jupiter’s JUP managed to buck the trend by posting a 3.5% gain over the same period. This unexpected rise was fueled by the token’s decision to repurchase tokens from the open market using fees generated on its trading platform, potentially leading to significant net buying volumes in the coming year.
The sell-off was exacerbated by bitcoin’s drop below $99,000, prompting traders to cash in their profits ahead of the first U.S. Federal Open Market Committee (FOMC) meeting of the year. The bearish sentiment was further fueled by losses in U.S. stock futures, which tumbled as traders reacted to news about China-based DeepSeek’s capabilities, casting a shadow over the bullish narrative championed by OpenAI.
Futures markets mirrored the downward trend, with traders of bitcoin-tracked products losing a staggering $238 million in the past 24 hours, particularly during the early European and Asian afternoon sessions. Notably, liquidations of SOL and DOGE bets accounted for a substantial $50 million, while altcoin-tracked products and ether-tracked futures saw losses of $138 million and $84 million, respectively.
The largest single liquidation order, valued at $98.4 million, took place on an HTX tether-margined BTC trade. Liquidations occur when traders are unable to meet the margin requirements to keep a leveraged trade open, a common occurrence in the volatile cryptocurrency market. While such events can signal an overextended market and potential price corrections, they also offer valuable insights into market sentiment and positioning.
Shaurya Malwa, Co-Leader of the CoinDesk tokens and data team in Asia, weighed in on the recent market developments. Despite holding a diverse portfolio of cryptocurrencies, including BTC, ETH, SOL, and many others, Malwa acknowledges the challenges posed by market volatility and the importance of strategic decision-making in such turbulent times.
As the cryptocurrency market continues to navigate through choppy waters, traders are advised to exercise caution and remain vigilant against sudden price fluctuations. While heavy liquidations may present opportunities for both short and long-term positions, it’s crucial to approach trading with a well-thought-out strategy to mitigate risks and capitalize on potential gains.
