ADA, XRP, and SOL futures each recorded over $70 million in liquidations on Sunday, marking their highest levels since September 2024, according to Coinglass data.
Bearish traders collectively faced nearly $600 million in losses as crypto markets surged following President Donald Trump’s announcement of a U.S. strategic crypto reserve.
Sundays often experience lower trading liquidity, leading to exaggerated price swings. Cardano’s ADA skyrocketed 60% in 24 hours, while XRP and Solana’s SOL posted 25% gains. Bitcoin (BTC) also rallied 9%, reinforcing the market’s bullish momentum.
BTC-tracked futures suffered the most significant liquidations, with over $344 million in positions closed, followed by $170 million in liquidations on ETH-tracked futures.
Liquidations occur when exchanges automatically close leveraged positions due to insufficient margin, forcing traders out of their trades when they can no longer maintain the required collateral. These events are common during periods of heightened volatility.
Large-scale liquidations can serve as a contrarian market indicator, suggesting potential reversals or profit-taking opportunities. Traders often analyze this data alongside other technical factors to navigate market trends.
Meanwhile, open interest—the total number of unsettled futures contracts—has increased by up to 40% for XRP, ADA, and SOL, signaling that traders expect further market fluctuations.
Bitcoin (BTC) surged past $93,000 in early Monday trading, recovering from last week’s drop to $83,500. The previous decline was influenced by macroeconomic concerns, including U.S. tariffs and a stronger demand for traditional safe-haven assets like gold and the Japanese yen.
Some market analysts had anticipated a potential dip to mid-$70,000 levels, given the rise in short positions and downside-skewed open interest.
However, Trump’s remarks have reignited bullish sentiment, at least in the short term. While uncertainty remains regarding the long-term impact, speculation about BTC reaching the $100,000 mark has once again gained traction, as highlighted in a CoinDesk analysis earlier Monday.
