Nearly $900M Crypto Positions Liquidated Amid Persistent Memecoin Implosion

The cryptocurrency market has witnessed massive liquidations, with nearly $887.46 million in leveraged positions wiped out in the past 24 hours.

According to Coinglass, Bitcoin ($274.59 million) and Ethereum ($196.12 million) traders suffered the biggest losses, followed by Solana ($98.93 million) and XRP ($40.50 million) traders.

Most of the liquidations came from long positions, accounting for $814.76 million, while short traders lost a smaller sum of $72.69 million. The largest single liquidation order, worth $10 million, occurred on BitMEX’s XBTUSD pair.

Memecoin Mania Stumbles, Drags Crypto Market Down

One of the key drivers behind this liquidation cascade is the ongoing turmoil in memecoin markets.

Several speculative assets saw intensified selling pressure, contributing to traders’ forced exits. Memecoins have been experiencing sharp drawdowns amid growing concerns about their sustainability and insider manipulations.

For instance, Solana, a major hub for memecoin activity, has lost roughly $50 billion in market value over the past month, partly due to the fallout from the Libra memecoin scandal involving Argentinian President Javier Milei.

Another top Solana coin—Official Trump (TRUMP)—backed by US President Donald Trump, has dropped by over 75% from its peak.

As a result, the price of SOL has plunged massively, fueling broader skepticism toward speculative assets in the Solana ecosystem. Additionally, $1.72 billion worth of SOL is set to be unlocked on March 1, increasing selling pressure as new supply enters the market.

“With continued unlocks and supply hitting the market, folks are just selling,” said Edward Chin, co-founder of Parataxis. He noted that altcoin markets lack a strong narrative, leading to sustained capital outflows into Bitcoin, which has shown relative strength amid the turbulence.

Notably, Bitcoin has dropped by 3.50% in the past 24 hours compared to the altcoin market’s combined 8.80% plunge. As a result, the Bitcoin Dominance Index (BTC.D), which tracks Bitcoin’s market share against the broader crypto market, has risen.

Trump Tariffs Rattle Risk Sentiment

Trump’s latest decision to proceed with tariffs on Canada and Mexico, along with new restrictions on Chinese investments in key sectors, has rattled financial markets, triggering a broader risk-off sentiment.

Trump confirmed that the tariffs on Canadian and Mexican imports, originally delayed, are now on schedule to take effect next month, stating that the process is “moving along very rapidly.”

Additionally, the president directed a government committee to curtail Chinese investments in technology, energy, and other strategic U.S. industries, further intensifying market uncertainty.

Investors are increasingly cautious as concerns mount over inflationary pressures and potential interest rate adjustments in response to trade tensions. The market reaction suggests that traders are moving away from riskier assets like altcoins and memecoins, which have been among the hardest hit.

Market is Repeating 2017 Bull Run Structure — Top Crypto Analyst

Historical Bitcoin price action from 2017 shows that sharp corrections were a recurring theme during the bull market. At least five major 28% or more pullbacks occurred before the cryptocurrency reached its all-time high of around $20,000.

The chart highlights these downturns, with drawdowns ranging from 27% to nearly 39%. These corrections lasted between two to three months before Bitcoin resumed its rally.

The most significant drop occurred around June-July 2017, when Bitcoin tumbled 37.04%, while another steep 38.67% correction occurred in September.

Despite these deep retracements, Bitcoin continued to climb, reinforcing a common historical pattern: volatility is a feature of Bitcoin’s bull cycles, not a flaw.

The broader altcoin market saw even steeper corrections, often exceeding 65%. This underscores the higher volatility of alternative cryptocurrencies compared to Bitcoin, particularly during the euphoric market phases.

Raoul Pal, co-founder of Real Vision, pointed out that such drawdowns are not unusual and urged investors to exercise patience rather than panic. He noted that market participants who focus too much on short-term price swings risk losing sight of Bitcoin’s long-term trajectory.

Technical, Bitcoin appears oversold on the four-hour chart, which may lead to a short-term bullish reversal.

The cryptocurrency is further bouncing after testing the lower trendline of its prevailing descending channel, paving the way for a continued rally toward the upper boundary near $98,000.