Meme coins lost $90 million in the past 24 hours, causing crypto-tracked futures losses of $550 million. In the past week, leveraged crypto futures bets reached $66 billion, while certain token financing rates reached over 100% annualized.
Over $550 million in losses occurred in the past 24 hours as bitcoin {{BTC}} fluctuated from $68,000, surprising both bulls and bears.
As enthusiasm from several catalysts extended into its second week, Bitcoin and ether {{ETH}} momentarily rose beyond $68,500 and $3,700, respectively. But profit-taking began in early Asian hours, with bitcoin sliding to $64,500 before rebounding $67,000.
Over $240 million was lost by longs, while $320 million was lost by shorts. In a rare move, dogecoin (DOGE), shiba inu (SHIB), and pepecoin (PEPE) futures dropped $90 million across exchanges. Last week's 110% weekly increase was driven by DOGE's record bullish bets.
An exchange liquidates a trader's leveraged position after a partial or whole margin loss. Large liquidations might indicate the local peak or bottom of a steep price move, allowing traders to position themselves.
Before April's halving event, traders predict bitcoin to reach its lifetime top and a spot ether ETF to be approved in May.Since bitcoin is nearing its lifetime high of $69,000, some funds expect leverage to rise.
“Leveraged buyers will likely not relent until we break all-time highs, which could be any time now,” crypto fund QCP Capital stated on Telegram Tuesday. “This is a similar magnitude of leverage to 2021, pushing the front-end of the curve higher and elevating the back-end.”
Data shows leveraged crypto futures bets rose to over $66 billion last week, while token funding rates rose to over 100% annually. Trading requires funding when traders borrow money to make larger trades.
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