Bitcoin and major altcoins continue to slide days after the largest-ever forced liquidations.
The crypto market dropped on Tuesday after Monday’s brief rebound, as investors shied away from risky assets following the largest wave of crypto 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 slid lower: BNB dropped 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 USDe’s brief depeg on Binance on Friday, which triggered mass liquidations.
However, earlier today, Binance revealed plans to support liquidated users with $300 million in token vouchers and a $100 million loan program.
Meanwhile, XRP declined 3.7% to $2.50. Dogecoin (DOGE), the largest memecoin by market capitalization, fell 3.5% to $0.20.
The top gainers over the past 24 hours include ChainOpera AI (COAI), up 20% to $9.05, Bittensor (TAO), which rose 12% to $469, and Zcash (ZEC), gaining 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 capitalization dropped 1.5% on the day to $3.95 trillion, with Bitcoin dominance at 57% and Ethereum’s at 12.6%.
Liquidations and ETF Flows
In the past 24 hours, nearly $706 million in crypto positions were liquidated, according to Coinglass data. Long positions made up $456 million, while shorts accounted for over $249 million.
Ethereum led the liquidations with $234 million, followed by Bitcoin at $168 million, and other altcoins totaling $68 million.
Spot Bitcoin ETFs recorded outflows of over $326 million on Monday, marking the second consecutive day of withdrawals. Similarly, spot Ethereum ETFs experienced more than $428 million in outflows and also recorded their second straight day of declines, per SoSoValue.
Geopolitical Uncertainty
Analysts say the sell-off extends Friday’s market jitters sparked by renewed U.S.-China trade tensions, after Washington announced new 100% tariffs on Chinese tech imports. The move continues to rattle global markets as tensions increase.
“The bloodbath we saw in markets over the weekend is a brutal reminder that, as the crypto market grows and matures, the risks are amplified,” said Nic Puckrin, co-founder of The Coin Bureau. ”The arrival of spot crypto ETFs and institutional interest has lulled investors into a false sense of security, but it remains the only market that trades after hours.”
He added that in the current environment, thin liquidity, overleverage, and the large players “make for a toxic cocktail.”
In more positive news, BlackRock CEO Larry Fink hinted this morning that the asset manager will explore tokenization technology for different assets in an interview with CNBC.
“I do believe we’re just at the beginning of the tokenization of all assets,” Fink said. “From real estate to equities, to bonds across the board.”
This comes as the real-world asset (RWA) sector nears $34 billion in total RWA on-chain value, per RWAxyz data.