• Solana, Dogecoin, and Cardano trade in the red on Friday. 
• Crypto market liquidations surge to $635 million, driven mainly by long liquidations.
• Bearish bets increased in the derivatives market as market sentiment declines to neutral levels.

The cryptocurrency market is down on Friday, underpinned by the US Federal Reserve's decision to keep interest rates stable at 4.25% to 4.50% for the fifth consecutive time. Investors are on edge as short-term volatility sparks delays in the altcoin season, while bulls bleed over $600 million and bearish bets surge.

Solana, Cardano, and Dogecoin are leading the decline 

Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) are leading the decline among the top 10 crypto projects as a sudden sell-off wave hit the crypto market. The 24-hour drop in SOL, DOGE, and ADA averages around 7% while maintaining profits in the 30-day timeframe, reflecting the short-term nature of current volatility. 

Crypto market data. Source: CoinMarketCap

The drop in the crypto market is primarily driven by a profit-taking spree in Bitcoin (BTC) by new investors, resulting in realized profits of over $6 billion, and the delay in interest rate cuts due to the US Federal Reserve's wait-and-see decision amid tariff negotiations. 

Bearish takeover of the derivatives market

Amid the broader market meltdown, the bullish sentiment takes a hit with the massive wipeout of long positions. CoinGlass’ data shows $635 million of positions liquidated over the last 24 hours. Out of the total liquidations, long positions accounted for $577 million, compared to $58 million in shorts, indicating an exodus of bulls from the crypto market. 

Liquidation data. Source: Coinglass

Long liquidations in Solana, Cardano, and Dogecoin reach $34.86 million, $5.74 million, and $18.37 million, compared to $22 million, $286,800, and $847,710 in short liquidations. This creates an imbalance of sell-side dominance, evident by a surge in bearish positions.

Total liquidation data. Source: Coinglass

Based on the long vs short positions, Solana short positions account for 51.96% outpacing 48.04% of long futures over the last 24 hours. Similarly, Cardano and Dogecoin short positions have surged to 52.48% and 51.88%, respectively. 

Futures Long vs Shorts. Source: Coinglass

Investor sentiment takes a hit

Investors remain on edge as traders increase bearish exposure in short-term volatility, resulting in a decline in sentiment. CoinMarketCap’s Crypto Fear and Greed Index, at 57, down from 62 on Thursday, indicates a sudden shift in investor sentiment. Still, the sentiment gauge remains near a neutral level, suggesting that investors’ appetite is holding firm.

Crypto Fear and Greed Index. Source: CoinMarketCap