Crypto Market Slumps: SOL, DOGE Lead Decline, Bitcoin Dips Below $66,000

The crypto market took a significant downturn during the European morning, with major altcoins and meme coins experiencing a sharp drop. Solana (SOL) and Dogecoin (DOGE) were among the worst performers, falling by 4.5% and 10% respectively in the past 24 hours. Bitcoin (BTC) also saw a decline, dipping below $66,000 to trade around $65,300, representing a 0.9% drop. Ethereum (ETH) followed suit, experiencing a more substantial decline of over 3.25% to trade at $3,400. The broader digital asset market, as measured by the CoinDesk 20 Index (CD20), also saw a considerable drop, falling just over 3% in the past 24 hours.

Adding to the negative sentiment, Bitcoin ETFs experienced significant outflows, totaling $145 million on Monday. The DOGE futures market also saw substantial liquidations of long trades, with bulls losing $60 million, a larger hit than BTC counterparts and the biggest loss since May 2021. BTC longs lost $47 million, while ETH longs suffered even more, losing $76 million. Overall, crypto longs lost over $440 million due to profit-taking and the strengthening dollar, traders said. This decline was accompanied by a decrease in open interest, which dropped 16% to $600 million. DOGE futures also exhibited a bearish bias with a long-short ratio of 0.94, suggesting further declines.

Meanwhile, ZKsync, a layer-2 blockchain, launched its airdrop on Monday, with 45% of the tokens claimed in under two hours. The ZK token opened at $0.31 but has since declined by about 32% according to CoinGecko data. The current market capitalization sits at approximately $800 million, based on the circulating supply, with about 3.7 billion tokens eligible for distribution. On a fully diluted basis, the market cap would reach $4.5 billion. Cryptocurrency exchanges Binance, Bybit, and KuCoin have listed the ZK token, despite Binance's earlier announcement of postponing the listing due to technical issues with its node.