Welcome Bonus: Sign Up & Get Up to $150 in BTC

Get Started

Ripple (XRP), Dogecoin (DOGE) drop 10% as cryptos plunge

The market dropped ahead of a massive options expiry on Friday, with several large-caps falling 10%.

Ripple (XRP), Dogecoin (DOGE) drop 10% as cryptos plunge

Cover art/illustration via CryptoSlate

Top cryptos fell by over 5% today as the broader market saw a hit ahead of a $2 billion Bitcoin options expiry on Friday, data from multiple sources shows.

Leading the red charts were Ripple (XRP), Dogecoin (DOGE), and Solana (SOL), with each falling by over 10% and losing billions of dollars from their respective market caps in mere minutes.

As per data on CryptoSlate, the crypto market lost -4.8% off its $2.1 trillion market cap this morning. Bitcoin (-3%) and Ethereum (-4%) saw relatively lesser drawdowns compared to the likes of more popular alts, such as Cardano (-7%), Polkadot (-8%), and Solana (-13%).

Image: CryptoSlate.

Liquidations reach $589 million

Liquidation data on on-chain research tool Bybt showed over $589 million worth of crypto positions were lost to exchanges as the market moved against what most traders had bet on.ย 

โ€˜Liquidations,โ€™ for the uninitiated, occur when leveraged positions are automatically closed out by exchanges/brokerages as a โ€œsafety mechanism.โ€ Futures and margin tradersโ€”who borrow capital from exchanges (usually in multiples) to place bigger betsโ€”put up a small collateral amount before placing a trade.

Bitcoin traders took on a majority of all liquidations over the past day, with $200 million worth of trading positions getting obliterated. Ethereum traders were next with $113 million in liquidations, with Ripple (XRP), Cardano (ADA), and Dogecoin (DOGE) traders taking on $49 million, $28 million, and $24 million worth of damages.

86%โ€”or $511 million of all liquidationsโ€”of all traders were those of a โ€˜longโ€™ position, meaning betting on higher asset prices.