The cryptocurrency market began the week with one of its steepest declines of 2025, losing over $151 billion in market value within a single day. Data from CoinGlass shows that more than $1.7 billion in leveraged positions were liquidated in just 24 hours, leaving over 402,000 traders at a loss.
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Ethereum (ETH) suffered the largest losses, with nearly $500 million in liquidations, while Bitcoin (BTC) experienced around $284 million in losses. Altcoins like XRP, Solana, Dogecoin, and Hyperliquid (HYPE) fell between 7–12%, erasing recent gains and marking a sudden end to the latest altcoin rally.
The downturn started when BTC dropped below $113,000, activating margin calls and automated sell-offs. In just half an hour, liquidations exceeded $1 billion, highlighting the vulnerability of highly leveraged trading conditions.
Bitcoin Dominance Rises as Altcoins’ Value Drops
The sell-off caused a significant shift in market sentiment. The Altcoin Season Index, which recently peaked at 100 points, has dropped to 64, indicating a move back toward Bitcoin. BTC dominance has risen to 57%, while ETH dominance has fallen to 13%.
Historically, altcoin seasons last only a few weeks before liquidity shifts back to Bitcoin. Analysts believe this recent liquidation event may have cut this cycle short.
Smaller tokens like ASTER, WLFI, and PUMP, which had experienced recent speculative increases, were significantly affected, with over $263 million in altcoin longs liquidated.
ETH's price trends lower on the daily chart. Source: ETHUSD on Tradingview
Healthy Shakeout or Bearish Warning?
Despite the significant losses, many analysts view the pullback as a necessary correction rather than the end of a bullish trend. Overleveraged traders have been eliminated, creating improved support levels for long-term holders.
Institutional interest appears to be steady, with Bitcoin and Ethereum ETFs posting consistent inflows last week, indicating that larger investors continue to take advantage of price dips. On-chain data reveals that 420,000 ETH has left exchanges, suggesting accumulation despite short-term fluctuations.
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At this point, the market’s trajectory will depend on whether Ethereum can maintain levels above $4,100 and if Bitcoin can stabilize in the $112,000–$114,000 range. Despite some trader skepticism, analysts anticipate that this correction could lay the groundwork for the next upward push in the ongoing bull market.
Cover image from ChatGPT, ETHUSD chart from Tradingview
