- Dogecoin (DOGE) and Solana (SOL) posted double-digit losses, with DOGE falling 12% and SOL dropping 10% in the past 24 hours.
- The crypto market is having a rough week, with all of the top 50 cryptocurrencies, barring stablecoins, posting overnight losses.
- Over $691 million was wiped out in liquidations, with Bitcoin traders suffering around $150 million in long liquidations, and a single whale on Binance losing $467 million in one shot.
Too much leverage has led to an inevitable pause in the crypto market, but this is largely seen as a healthy correction, analysts argued.
Dogecoin and Solana Lead Losses
Of the top 10 cryptocurrencies by market cap, Dogecoin (DOGE) and Cardano (ADA) have taken the biggest hits, while Solana (SOL) and XRP have also dropped by double digits in the past 24 hours.
Over the past day, Dogecoin fell 12% to $0.037, while Cardano dropped 14.7% to $0.090, Solana dropped 10% to $22.7, while XRP dipped by 10.7% to $1.33.
Bitcoin (BTC) wasn’t spared either, dropping 6.1% to $92,362, while Ethereum eased down 4.5% to $3,324.
Market Overbought With Excessive Leverage
The market had become extremely overbought since the election, with excessive leverage making a pause inevitable, QCP Capital said in its most recent broadcast.
Bitcoin’s decline in particular is said to have coincided with spot ETFs ending a five-day streak in terms of net inflows. Liquidation data from CoinGlass shows over $691 million wiped out for over 180,000 positions.
source: coingecko
Macro Indicators: FOMC Minutes, PCE Data
Two key macro indicators are coming one after the other starting Tuesday night.
First up are the Fed’s minutes for its November meeting. Next up is the PCE data drop ahead of Thanksgiving due Wednesday, which looks like it might show inflation ticking up a bit based on other recent numbers.
Traders are somewhat split on whether another rate cut is coming by December, with just over half betting it’ll happen – though as usual these will come down to what the economic numbers tell us.
Conclusion
At least for now, the general view sees the past week’s momentary pause as a healthy correction rather than the start of a longer downward trend.
