Dogecoin (DOGE) futures took a harder hit than Bitcoin (BTC) counterparts on Monday as a significant decline in the meme token’s price led to the liquidation of $60 million in long positions. DOGE saw its price drop by more than 10%, though it briefly rebounded amid a broader sell-off affecting major cryptocurrencies and Bitcoin during Asian trading hours. Over the past 24 hours, the CoinDesk 20 Index (CD20), reflecting the overall crypto market, fell by 3.4%.

In the same period, BTC long positions incurred losses amounting to $47 million, while bullish bets on Ether (ETH) saw the largest losses at $76 million. Overall, the crypto market experienced long liquidations totaling over $440 million, attributed to profit-taking and a strengthening US dollar, according to traders.

Lucy Hu, a senior analyst at Metalpha, highlighted that the meme coin sector, including DOGE, has been retreating this month amidst downward pressure on Bitcoin prices. Investor caution, driven by expectations of a Federal Reserve rate cut prompting a shift from risky to safer assets, may further impact DOGE given its prominence among meme coins.

Coinanlyze data indicated that nearly all liquidation activity involving DOGE in the past day stemmed from long positions betting on higher prices, amounting to over $60 million. This surge in liquidations marks the highest level for DOGE futures since May 2021, with a significant portion occurring on Huobi, a popular exchange in Asia.

The open interest in DOGE futures dropped by 16% to $600 million, suggesting reduced speculative activity. Additionally, a long-short ratio tracking DOGE futures indicated a bearish sentiment among traders, with the ratio standing at 0.94, indicating expectations for further declines in the token’s price.

Liquidation in futures trading occurs when exchanges forcibly close leveraged positions due to insufficient margin, effectively cutting off traders unable to meet margin requirements. This phenomenon underscores the market’s sensitivity to price swings and speculative trading dynamics, particularly within high-profile cryptocurrencies like DOGE.

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