With over $1 billion liquidated across exchanges in less than 60 minutes, the cryptocurrency market just saw one of the most brutal hours of 2025. Fears of one of the biggest coordinated sell-offs of the year have been aroused by the abrupt wave of forced position closures that has affected major cryptocurrencies, a wave of market-wide liquidation.
Rare but not unheard of, these kinds of liquidity events typically occur when overly leveraged long positions are wiped out during sharp price drops. It is clear from the sharp red candles displayed by Bitcoin, Ethereum and Shiba Inu that no significant asset was spared by the liquidation wave.
- Bitcoin: The biggest cryptocurrency has erased the short-term gains it made over the last week by plunging to the $113,000 range. Although Bitcoin is technically still above its 200-day moving average, a decline below $111,800 would put it at even greater risk of falling toward $106,000. With this indication of diminishing momentum, the RSI supports general sell pressure.
- Ethereum: ETH experienced a more severe decline, falling over 5% in a single day and leaving its symmetrical triangle pattern at $4,200. The formation’s breakdown demonstrates how brittle the bullish momentum was, and bears may seize control with targets around $3,800 if ETH is unable to recover $4,400.
- Shiba Inu: The market for meme coins was disproportionately affected, and SHIB saw one of its biggest one-day declines in months, losing 7% intraday. Its inability to maintain above $0.000013 allowed it to drop back to $0.000010, thereby increasing its price by another zero.
Will this be 2025’s worst bloodbath?
Hourly liquidations of $1 billion are severe, but they are still below the $1.06 billion liquidation spike that occurred in early 2025. However, the move’s timing and scope, affecting both altcoins and top caps, make it a crucial stress test for market sentiment.
Deeper instability may result from a recurrence if leveraged trading keeps taking the lead. As volatility continues to be high, the carnage highlights the dangers of overexposure and the necessity of cautious positioning.
