Crypto Markets Cautious as Long Liquidations Soar, Derivatives Risk Rises

Bitcoin Analysts Note Retail Hesitancy as BTC Surges to $90K Temporarily

  • Crypto markets showed caution as futures activity rose while spot price movements remained muted.
  • Long liquidations dominated, especially for Bitcoin and Ethereum, even as prices stayed close to recent ranges.
  • Analysts signaled rising risk in derivatives markets due to increases in both funding rates and open interest.
  • Most major altcoins demonstrated resilience with spot demand absorbing pressure from leveraged trades.

Bitcoin and several leading cryptocurrencies traded sideways on Monday night amid signs of increased caution from market participants. Despite subdued spot price moves, long liquidations were significant across major digital assets. Investors appeared to be repositioning, potentially in response to changing risk in derivatives markets.

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Bitcoin traded at about $88,300, down 0.2% from the previous day. According to Coinglass data, nearly $84.3 million in crypto long and short liquidations occurred over 24 hours, with more than $53 million coming from long positions. Sentiment among retail traders remained extremely bearish, while overall discussions about Bitcoin increased from low to normal levels.

Analysis from Glassnode showed a rise in perpetual open interest for Bitcoin from 304,000 to 310,000 BTC. Funding rates doubled from 0.04% to 0.09% as prices pushed to $90,353 earlier in the session. This pattern prompted warnings that risk in derivatives markets could be on the rise. Alex Thorn, Head of Firmwide Research at Galaxy Digital, noted that when accounting for inflation, Bitcoin has yet to exceed $100,000 in 2020-dollar terms—describing recent highs as a nominal repricing rather than an excess gain as stated here.

Ethereum, trading around $2,997, fell 0.4% in the last day. The asset saw approximately $54 million in total liquidations, with the majority from long trades. Data indicated frequent resets in market leverage while retail sentiment remained bearish.

Solana rose 0.4% to about $125.80, posting $5.8 million in total liquidations. As with other coins, most of these were long positions. Steady spot demand helped limit sharp price movements. Sentiment stayed bearish but with a slight uptick in trading discussions.

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Ripple’s XRP slipped 1.2% to roughly $1.90, with $2.2 million in liquidations dominated by long unwinds. Dogecoin gained 1.1% to $0.132 despite $2 million in long liquidations, showing some reduction in speculative positions. Binance Coin hovered at $857 with relatively modest liquidation activity. tron fell 1.5%, and Cardano gained 0.8%, each experiencing limited liquidations and muted sentiment shifts.

In total, more than $240 million was liquidated across the crypto market in the past 24 hours. Most of these losses came from long positions, pointing to a controlled reduction in leverage rather than panic selling or rapid shifts in risk-taking.

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Bitcoin (BTC) $ 90,330.00 2.56%
Ethereum (ETH) $ 3,123.34 4.58%
XRP (XRP) $ 1.99 6.72%
Bittensor (TAO) $ 245.27 8.66%
Polkadot (DOT) $ 2.05 4.86%
Cardano (ADA) $ 0.387428 10.60%
Chainlink (LINK) $ 13.27 6.81%
Hyperliquid (HYPE) $ 24.62 1.05%
Monero (XMR) $ 422.72 0.16%
Hedera (HBAR) $ 0.119882 7.82%
Toncoin (TON) $ 1.90 13.25%