Late Monday, crypto markets experienced a sharp pullback, triggering over $500 million in long liquidations. This erased earlier gains as Bitcoin (BTC) slipped from weekend highs. Traders reacted to de-escalating U.S.-China trade tensions.
Coinglass data indicates that over $530 million in long positions were liquidated in the past 24 hours. Nearly $200 million came from Bitcoin-tracked futures and $170 million from Ether (ETH) products. Dogecoin (DOGE) and Cardano (ADA) fell as much as 7%.
Solana (SOL), XRP, and BNB Chain's BNB lost between 5%-6%. The liquidations reversed last week's rally, which saw ETH gain 40%. Futures open interest across major exchanges fell by more than $1.2 billion, per Coinglass data.
Markets turned lower during U.S. trading hours Monday following reports of a U.S.-China tariff truce. Analysts are focusing on the upcoming Fed meeting in June. The Fed decision will likely be the key factor in driving Bitcoin past its previous all-time high.
Jeff Mei, COO at crypto exchange BTSE, stated the Fed decision would stimulate lending and investment in the U.S. economy. He hopes that this will drive growth and avoid a recession.
Analysts caution that the near-term flush may reset frothy sentiment. They are keeping an eye on the next Fed meeting in June.
This article is based on our author's analysis of materials taken from Coindesk.