Bitcoin and Ethereum’s Sharp Plunge Sparks Record $1.7 Billion Liquidation to Kick Off the Week

Monday's crypto bloodbath leaves traders reeling as massive liquidations hit the market.

The Domino Effect

Bitcoin's sudden 15% nosedive dragged Ethereum down with it—triggering a cascade of forced selling across leveraged positions. Exchanges saw margin calls explode as positions got wiped faster than a meme coin's credibility.

Liquidation Carnage

That $1.7 billion liquidation figure isn't just a number—it's a stark reminder that crypto markets eat overleveraged traders for breakfast. Long positions got absolutely crushed while short-sellers cashed in on the panic.

Market Mechanics Exposed

When volatility spikes, the infrastructure shows its cracks. Liquidation engines work overtime, order books thin out, and suddenly everyone remembers why risk management exists—or should exist.

Another week, another 'unprecedented' move—because in crypto, history doesn't repeat itself, it just liquidates harder. Maybe those 'stable' yields weren't so stable after all.

Wedson explained that Bitcoin’s short-term holder realized price currently sits at $111,400, a level that institutions should have secured much earlier. He also noted that Bitcoin’s Sharpe Ratio, which is used to measure returns against risk, has weakened compared to 2024.

Considering this, he stated:

“Those who bought BTC at the end of 2022 are happy with +600% gains, but those accumulating in 2025 should reconsider their strategy.”

$1.7 billion liquidation

The sudden price correction has sparked the largest liquidation event of the year.

Data from Coinglass shows that $1.7 billion worth of Leveraged positions were wiped out in the past 24 hours, with long traders taking the heaviest hit. Losses from bullish bets totaled $1.6 billion, while short positions lost $83 million.

Ethereum traders endured the most pain, with $498 million in liquidations, followed by bitcoin at $284 million. XRP and Solana also saw positions worth $78 million and $95 million liquidated, respectively.

These figures underline the inherent volatility of crypto markets. When leverage builds up during bullish runs, a rapid correction can wipe out billions in unrealized gains.

So, this sharp reset highlights why traders, particularly institutional entrants, remain cautious about the emerging industry even as adoption grows.