Bitcoin and major altcoins continue to fall days after the largest forced liquidations ever.
The cryptocurrency market fell on Tuesday after Monday’s brief rebound, as investors moved away from risky assets following the largest wave of cryptocurrency liquidations in history on Friday.
Bitcoin (BTC) fell about 2% to around $112,000, while Ethereum (ETH) slipped to $4,040.
Other Top 10 tokens also fell: BNB fell 5.5% to $1,212 after hitting another all-time high of around $1,370 on Monday. This comes amid fear, uncertainty, and doubt (FUD) surrounding the brief USDe drawdown on Binance on Friday, which triggered massive selloffs.
However, earlier today, Binance revealed plans to support liquidated users with $300 million in tokenized vouchers and a $100 million lending program.
Meanwhile, XRP fell 3.7% to $2.50. Dogecoin (DOGE), the largest memecoin by market capitalization, fell 3.5% to $0.20.
Top gainers over the past 24 hours include ChainOpera AI (COAI), up 20% to $9.05, Bittensor (TAO), which is up 12% to $469, and Zcash (ZEC), up 7% to $260.
The day’s biggest losers among the top 100 tokens were Flare (FLR), down 7% to $0.01; PEPE, which fell 4% to $0.05; and Worldcoin (WLD), sliding 3.8% to $0.95.
The total crypto market cap fell 1.5% on the day to $3.95 trillion, with Bitcoin dominating at 57% and Ethereum at 12.6%.
ETF Liquidations and Flows
Over the past 24 hours, nearly $706 million in crypto positions were liquidated, according to Coinglass data. Long positions accounted for $456 million, while short positions accounted for over $249 million.
Ethereum led the liquidations with $234 million, followed by Bitcoin with $168 million and other altcoins totaling $68 million.
Spot Bitcoin ETFs saw outflows of more than $326 million on Monday, marking the second consecutive day of withdrawals. Similarly, Ethereum spot ETFs saw outflows of over $428 million and also recorded their second consecutive day of decline, according to SoSoValue.
Geopolitical uncertainty
Analysts say the selloff continues Friday’s market jitters triggered by renewed trade tensions between the United States and China, after Washington announced new 100% tariffs on Chinese technology imports. The move continues to rock global markets as tensions rise.
“The bloodbath we saw in the markets this weekend is a stark reminder that as the crypto market grows and matures, the risks are magnified,” said Nic Puckrin, co-founder of The Coin Bureau. “The arrival of crypto spot ETFs and institutional interest have lulled investors into a false sense of security, but it remains the only market that trades after hours.”
He added that in the current context, low liquidity, over-indebtedness and the presence of large players “constitute a toxic cocktail”.
In more positive news, BlackRock CEO Larry Fink hinted this morning that the asset manager would explore tokenization technology for different assets in an interview with CNBC.
“I think we are only at the beginning of tokenizing all assets,” Fink said. “From real estate to stocks to bonds across the board.”
This comes as the real-world assets (RWA) sector approaches $34 billion in total on-chain RWA value, according to RWAxyz data.
