In the past day, the cryptocurrency market has sold off more than $345 million worth of trading positions. Surprisingly, “other” cryptocurrencies—those with market caps below the top 50—accounted for $100 million of the total.
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On June 8, Finbold obtained this data from CoinGlass after a significant crash that traders surmise occurred as a result of macroeconomic data.
With $103.82 million in liquidations, long-position traders exposed to “other” cryptocurrencies suffered the great majority of losses. Just $6.09 million was lost by short sellers of these low-cap coins, for a total of $109.91 million in capital lost in a single day.
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With $309.53 million of the $345.12 million in digital asset liquidations, bulls were largely penalized. Ethereum (ETH) saw $38.75 million in liquidations, primarily from long positions, compared to $43.21 million for Bitcoin (BTC).
Altcoin and meme coin traders suffered heavy losses amid liquidations.
In this regard, since June 7, the capitalization of TradingView’s crypto market cap index (TOTAL3), which comprises all cryptocurrencies with the exception of BTC and ETH, has decreased by more than $60 billion. According to the index, the $666 billion market is presently being tested for resilience ahead of a potential altseason.
On a daily chart, TOTAL3’s 30-day exponential moving average (30-EMA) is marginally below. Therefore, rising from this support level would indicate bullish momentum for cryptocurrencies, probably sparking a surge. According to Finbold, analysts have discovered a “once in a few years golden opportunity” with these alternative cryptocurrencies.
It’s interesting to note that in the midst of the market’s growing meme coin frenzy, the current crash may aid in sifting out promising projects. For instance, an investment in meme coins results in $8 million in unrealized losses for a crypto influencer.
Because meme coins are speculative, traders should not undervalue the significant risks associated with them. These cryptocurrencies frequently have no inherent value, and social media hype is what drives their prices most of the time.
Meme coin investors and traders are effectively gambling in the hopes of selling their holdings to others for a higher price. This kind of thinking is consistent with the “Greater Fool Theory,” which holds that assets with high valuations can be profitable. This theory does, however, also highlight the inherent risk because there may eventually run out of buyers willing to enter the market. 
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