Solana has plunged more than 20% to trade near $110 as crypto traders see more than $1 billion in trading positions wiped out in the past 24 hours.

SOL dipped as Bitcoin led the crypto market in the bloodbath that had BTC testing lows of $49k and Ethereum tumbling to under $2.2k. Solana, which traded at highs of $145 late Sunday, fell sharply to test the $111 price level on Monday.

Declines for SOL and the rest of the crypto market came as investor fears over a US recession catalysed a global market meltdown in stocks. The Federal Reserve’s interest rates policy is also a major concern, while geopolitical tensions are also a factor.

“I’m calling for a 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting – and that’s minimum,” says Wharton’s Jeremy Siegel: pic.twitter.com/s4CgWx962Q

— Squawk Box (@SquawkCNBC) August 5, 2024

In the crypto market, jitters over selling pressure from Jump Trading intensified the bleeding for ETH and other altcoins.

Crypto sees over $1 billion in liquidations

As crypto prices tumbled on Monday to see the total market cap dip 17% to under $1.9 trillion, hundreds of crypto traders experienced massive liquidations.

Coinglass data showed early Monday that total liquidations jumped more than 400% to over $1.1 billion. These were mainly long positions, with data indicating more than $962 million were leveraged positions that had bullish bets on crypto prices.

Amid the BTC crash and broader market decline, the number of crypto traders liquidated in 24 hours spiked past 301,700.

The total liquidations at the time of writing stood at $1.14 billion, with the largest single liquidation order being the $27 million in BTC.USD wiped out on crypto exchange Huobi.

Notably, short liquidations were at just $174 million, with $64 million in bearish bets for BTC and $50 million for Ethereum in 24