Bullish bets on Dogecoin (CRYPTO: DOGE) futures experienced significant setbacks on Monday, surpassing those of Bitcoin (CRYPTO: BTC).

What Happened: The dog-themed meme token saw a sharp decline, with $60 million in long trades liquidated as its price dropped more than 10% before briefly recovering during Asian trading hours, Coindesk reported.

This downturn came amid a broader sell-off in major cryptocurrencies.

Bitcoin long bets lost $47 million, while Ethereum bullish bets suffered the most with $76 million in liquidations.

Overall, the crypto market saw long positions losing over $440 million due to profit-taking and a stronger dollar, traders reported on Tuesday.

“The meme coin market has experienced a general pullback this month as bitcoin prices face pressure,” stated Lucy Hu, a senior analyst at Metalpha.

“The expectation of one rate cut by the Fed has prompted investors to divert from risky assets to less risky ones, and DOGE may suffer as one of the largest meme coins on the market.”

Data from Coinanlyze indicated that nearly all DOGE liquidation activity in the past 24 hours stemmed from longs, or bets on higher prices, with only about $600,000 worth of shorts, or bets against the token, being liquidated.

These figures represent the highest for DOGE futures since May 2021.

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The majority of the liquidations, over $44 million, occurred on Huobi, a crypto exchange favored by traders in Asia.

Open interest, or the total number of unsettled futures bets, dropped by 16% to $600 million.

Additionally, a long-short ratio tracking DOGE futures showed a bearish sentiment, with the ratio at 0.94, indicating traders are expecting further declines.

Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to insufficient funds to maintain the trade.

This happens when a trader cannot meet the margin requirements for a leveraged position, leading to a partial or total loss of the trader’s initial margin.

What’s Next: For those interested in gaining deeper insights into these market dynamics and the future of digital assets, Benzinga’s Future of Digital Assets event on Nov. 19 will be a crucial platform.

The event promises to offer valuable perspectives on regulatory impacts, investment strategies, and the evolving landscape of digital assets.

Read Next: Biden Admin Officials, Mark Cuban To Attend Crypto Roundtable In July

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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