The crypto market began its week in one of the sharpest declines of 2025, erasing market value of over $151 billion within a day. According to Coinglas data, leveraged positions of over $1.7 billion were liquidated in just 24 hours, bringing over 402,000 traders to red.
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Ethereum (Eth) suffered the heaviest loss in a close to $500 million liquidation, while Bitcoin (BTC) wiped out roughly $284 million. Altcoins such as XRP, solana, godecoin, and hyperquid (hype) rolled between 7-12%, erasing recent profits and marking the sudden end of the latest altcoin rally.
The cascade started with BTC below $113,000 and triggered margin calls and automatic cell-offs. Within just 30 minutes, liquidation has surged beyond $1 billion, highlighting the vulnerability of a highly utilized trading environment.
Bitcoin’s advantage increases as Altcoins values drop
The sale also brought a sharp reversal to market sentiment. The Altcoin Season Index, which peaked at 100 points just a few days ago, fell to 64, suggesting that traders are shifting towards Bitcoin. BTC’s dominance rose to 57%, while ETH’s dominance slipped to 13%.
Historically, the Altcoin season only lasts a few weeks when liquidity returns to Bitcoin. Analysts warn that the latest liquidation cascade may have ended this cycle earlier than expected.
Small tokens, including Aster, WLFI and Pump, have been hit hardest, with more than $263 million in altcoin longs being liquidated.
ETH price trends are lower on daily charts. Source: Ethusd on tradingView
Healthy shakeout or bearish warning?
Despite the sudden losses, many analysts argue that the pullback reflects a healthy reset rather than an end of the bull cycle. Over-traders have been washed away, creating a stronger level of support for long-term holders.
Demand for the scheme remains intact, with Bitcoin and Ethereum ETFs recording a steady inflow last week, suggesting that large investors will continue to buy DIP. On-chain data also shows the exchange leaving 420,000 ETH, which points to accumulation despite short-term volatility.
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For now, the next move in the market will depend on whether Ethereum will stabilize near the $112,000-$114,000 zone above $4,100. Despite trader skepticism, analysts are predicting corrections as they lay the basis for the next upward movement in the ongoing bull market.
ChatGpt cover image, TradingView’s Ethusd chart
