XRP, Dogecoin dive 12% as Altcoin carnage leads to highest bullish llquidation in nearly three years

What to know

• XRP, dogecoin (DOGE) and Cardano’s ADA fell as much as 15% in the past 24 hours, data shows, as selling pressure mounted in late U.S. hours.

• No immediate reason spurred the selling pressure, but it came as internet giant Google announced benchmark tests on its new Willow quantum computing chip.

• Market analysts and traders warned of short-term selling pressure amid an overheated market after a November rally.

Major tokens and midcaps registered one of their worst days in recent months with a sharp drop during early Asian hours on Tuesday, even as bitcoin (BTC) was relatively little changed.

XRP, dogecoin (DOGE) and Cardano’s ADA fell as much as 15% in the past 24 hours, data shows, as selling pressure mounted in late U.S. hours and amplified in early Asian time. Bitcoin dropped 3%, while ether (ETH) and Solana’s SOL fell 7%, as tron's TRX nearly reversed all of last week’s gains with a 17% haircut.

Overall market capitalization dropped by 6.5%, largest drop since October, while the broad-based CoinDesk 20 (CD20) index slumped 7%.

No immediate reason spurred the selling pressure, but it came on the back of internet giant Google announcing benchmark tests on its new Willow quantum computing chip — which led to market concerns about what it meant for crypto privacy and wallet security.

Market analysts and traders warned of short-term selling pressure amid an overheated market after a November rally, as CoinDesk reported earlier Monday.

The fall led to over $1.5 billion in longs, or bullish bets, being liquidated, the highest such figure since 2021. Altcoin futures tracked under “Others” by data provider CoinGlass led market losses at $560 million in an unusual move, with doge and XRP futures losing more than $70 million each.