$500 Million in Long Positions Wiped Out as Bitcoin Slips, Dogecoin and ADA Drop 7%

A wave of long liquidations swept through the crypto markets late Monday, as traders responded to a temporary easing of trade tensions between the U.S. and China. The selloff erased gains from earlier in the day and triggered over $530 million in forced position closures, according to Coinglass.

Bitcoin (BTC) dropped from weekend highs of over $104,000 to $101,300, pulling the broader market down with it. The correction followed the announcement that both nations would pause tariffs for 90 days and pursue further trade cooperation—an outcome that reduced market uncertainty and shifted focus back to macroeconomic fundamentals.

Ethereum (ETH) futures saw $170 million in liquidations, while bitcoin-related contracts accounted for nearly $200 million of the total. Altcoins were hit hard: Dogecoin (DOGE) and Cardano (ADA) fell 7%, while Solana (SOL), XRP, and BNB declined between 5%–6%.

The abrupt move came just days after a powerful rally fueled by short squeezes sent ETH up 40% and led to over $1 billion in short liquidations—the highest total since 2021.

Market observers say the sudden reversal is a function of excessive leverage and changing sentiment. Futures open interest declined by over $1.2 billion, reflecting a significant reduction in risk exposure.

“With the short-term narrative around trade tensions easing, attention turns back to macro indicators and central bank policy,” said Jeff Mei, COO of BTSE. “The upcoming Fed meeting in June could be pivotal for setting Bitcoin’s next major direction.”

For now, the crypto market appears to be recalibrating after an overheated stretch—awaiting clarity on interest rates, inflation, and broader liquidity conditions.