Bitcoin and Ethereum Sharp Plunge start week as record liquidation $1.7 billion

Crypto prices fell sharply during Asian trading hours, wiping out almost 4% of the market’s capitalization in one session.

Bitcoin has driven a recession, falling more than $4,000 a day, hovering nearly $112,000 during press. Encryption data.

Meanwhile, Ethereum slid 7% to $4,163, so it wasn’t limited to BTC, but XRP traded over 6% to around $2.82.

Other large tokens, including Solana, Dogecoin and BNB, also registered a reduction of over 6% in the same window.

The broad recession marked its first major revision after weeks of stable profits that put digital assets at highs.

The drop speed made some traders gross, but some analysts already highlighted potential risks.

Joao Wedson, founder of Blockchain Analytics Platform Alphractal, said Bitcoin is showing clear signs of cycle fatigue. He pointed to SOPR trend signals tracking profitability in the chain as evidence that investors are buying at historically high levels of profit margins already shrinking.

Wedson explained that he recognizes the realised price for short-term Bitcoin holders as currently at $111,400. He also noted that the Sharp ratio of Bitcoin, which is used to measure returns to risk, has been weakened compared to 2024.

With this in mind, he states:

“Those who purchased BTC at the end of 2022 are pleased with their +600% profit, but those who accumulated in 2025 should rethink their strategy.”

Liquidation of $1.7 billion

A sudden price adjustment has caught up with the biggest liquidation event of the year.

Data from Coinglass shows that leveraged positions worth $1.7 billion have been wiped out in the last 24 hours, with long traders getting the heaviest hits. The losses from bullish bets totaled $1.6 billion, while the short position lost $83 million.

Ethereum traders endured the most pain in a $498 million liquidation followed by $284 million in Bitcoin. XRP and Solana also saw positions worth $78 million and $95 million liquidation, respectively.

These numbers highlight the inherent volatility of the crypto market. If leverage accumulates during bullish execution, rapid revisions can wipe out billions with unrealized profits.

This sharp reset therefore highlights why traders, particularly institutional entrants, are cautious about emerging industries, even if adoptions grow.

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