Crypto Market Faces Largest Liquidation Shock of 2025
Crypto markets experienced the largest liquidation event of 2025, with significant single-day sell-offs for ETH, SOL, and BTC. Analyst CryptoInsightUK suggests this is a leverage flush rather than a structural market break, referencing liquidity maps and market-cap composites as indicators.
- Total2 (excluding BTC) closed around $1.66–$1.67 trillion and Total3 (excluding BTC and ETH) at $1.13 trillion.
- The total crypto market cap was just under $4 trillion, at $3.96 trillion.
- Short-term market movements may include a liquidity sweep and momentum divergence.
- For XRP, a potential move above $3.40 is observed, pending a brief wick-fill towards today's low.
- Dogecoin might revisit the $0.19–$0.20 zone after reclaiming $0.22 support.
- Cardano saw activity near $0.77, with main liquidity up at $1.00 and $1.20.
The day's volatility was driven by leverage, not underlying fundamentals, with approximately $1 billion of leverage flushed out in 30 minutes. Near-term direction depends on US cash-market flows, but larger structures remain intact. The analyst emphasizes emotional detachment and focusing on identifiable bottoming structures.
The decisive phase post-flush will determine if a final liquidity sweep completes the divergence or triggers a rotation lifting majors into overhead liquidity. At press time, ETH traded at $4,185.
