Bullish bets on Dogecoin futures suffered significantly on Monday, with liquidations totaling $60 million as the meme token’s price dropped over 10% before a brief recovery. This decline occurred alongside a sell-off in major tokens, including Bitcoin (available on Coinbase), during Asian trading hours. The CoinDesk 20 Index, which tracks the broader crypto market, fell by 3.4% in the past 24 hours.

Bitcoin (available on Coinbase) long positions lost $47 million, while ETHer bullish bets were the hardest hit, losing $76 million. In total, crypto long positions saw liquidations exceeding $440 million due to profit-taking and a strengthening dollar, according to traders on Tuesday.

“The meme coin market has generally pulled back this month as Bitcoin (available on Coinbase) prices come under pressure,” stated Lucy Hu, a senior analyst at Metalpha. “The expectation of a rate cut by the Fed has led investors to shift from risky assets to safer ones, impacting Doge as one of the largest meme coins in the market.”

Data from Coinanlyze reveals that nearly all Doge liquidation activity over the past 24 hours came from long positions, with only about $600,000 worth of short positions being liquidated. These figures represent the highest for Doge futures since May 2021, with over $44 million of the liquidations occurring on Huobi, a crypto exchange favored by Asia-based traders.

Open interest, or the total number of unsettled futures bets, dropped 16% to $600 million. Additionally, a long-short ratio tracking Doge futures indicated a bearish sentiment, standing at 0.94, suggesting traders are positioning for further declines.

Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to partial or total loss of the trader’s initial margin. This happens when a trader cannot meet the margin requirements for a leveraged position, meaning they lack sufficient funds to keep the trade open.

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