Bitcoin and major altcoins have continued to fall for days following the largest forced liquidation in history.
Cryptocurrency markets fell on Tuesday after a brief rebound on Monday, as investors shunned risk assets following Friday’s largest wave of crypto liquidations in history.
Bitcoin (BTC) fell about 2% to about $112,000, and Ethereum (ETH) fell to $4,040.
Other top 10 tokens also fell, with BNB falling 5.5% to $1,212 after hitting a new all-time high of around $1,370 on Monday. This comes amid fear, uncertainty, and suspicion (FUD) surrounding USDe’s brief depeg on Binance on Friday, causing mass liquidations.
However, Binance earlier today revealed plans to support liquidation users with $300 million in token vouchers and a $100 million loan program.
Meanwhile, XRP fell 3.7% to $2.50. Dogecoin (DOGE), the largest memecoin by market capitalization, fell 3.5% to $0.20.
Stocks that gained in value over the past 24 hours include ChainOpera AI (COAI), which rose 20% to $9.05, Bittensor (TAO), which rose 12% to $469, and Zcash (ZEC), which rose 7% to $260.
The biggest loser of the day among the top 100 tokens was Flare (FLR), which fell 7% to $0.01. PEPE fell 4% to $0.05. World Coin (WLD) fell 3.8% to $0.95.
On the day, the market capitalization of cryptocurrencies decreased by 1.5% to $3.95 trillion, with Bitcoin’s lead at 57% and Ethereum’s lead at 12.6%.
Clearing and ETF flows
According to data from Coinglass, nearly $706 million in crypto positions were liquidated in the past 24 hours. Long positions accounted for $456 million, while short positions accounted for over $249 million.
Ethereum led the way in liquidations with $234 million, followed by Bitcoin with $168 million and other altcoins with a total of $68 million.
The Spot Bitcoin ETF recorded over $326 million in outflows on Monday, the second consecutive day of withdrawals. Similarly, the Spot Ethereum ETF experienced over $428 million in outflows, marking its second consecutive day of declines, according to SoSoValue.
geopolitical uncertainty
Analysts said the decline extended Friday’s market turmoil sparked by a flare-up in trade tensions between the U.S. and China, after the U.S. government announced new 100% tariffs on high-tech imports from China. The move continues to rattle global markets as tensions rise.
“The catastrophes we saw in the markets over the weekend were a cruel reminder that as crypto markets grow and mature, the risks are amplified,” said Coin Bureau co-founder Nick Pucklin. “While the rise of spot crypto ETFs and institutional investors has lulled investors into a false sense of security, it remains the only market with after-hours trading.”
He added that in the current environment, illiquidity, over-leverage and large companies are “creating a toxic cocktail”.
In more positive news, BlackRock CEO Larry Fink hinted in an interview with CNBC this morning that the asset manager will consider various asset tokenization techniques.
“We believe this is just the beginning of the tokenization of all assets,” Fink said. “A wide range of things from real estate to stocks and bonds.”
This comes as the total RWA on-chain value of the real world assets (RWA) sector is approaching $34 billion, according to RWAxyz data.