Cryptocurrency markets experienced one of the most violent episodes of the year on Monday. In just 24 hours, more than 150 billion $ in market capitalisation vanished, driven by a sharp drop in Bitcoin below the key 112,000$ threshold.
Record liquidations in the crypto market
This sudden decline triggered a massive wave of liquidations on leveraged posistions.
- Over 1.5 billion $ was liquidated.
- Approximately 400,000 traders were affected.
- This was one of the most significant long liquidation episodes of 2025.
This correction highlights how vulnerable the crypto market remains to rapid movements in Bitcoin.
Altcoins under pressure: Ethereum and Dogecoin drop sharply
Bitcoin’s fall has affected the rest of the market:
- Ethereum (ETH) fell nearly 9% in 24 hours.
- Dogecoin (DOGE) and other large market caps suffered significant losses.
This record drop also illustrates the extreme sensitivity of the crypto market to sudden movements in Bitcoin. Beyond the massive liquidations, the entire altcoin market was severely affected: Ethereum fell below 4,200$, XRP plummeted to 2.80$, and Dogecoin lost more than 10% in 24 hours. Even lesser-known blockchain projects saw declines of up to 8%, confiming the domino effect that Bitcoin’s volatility can cause across all digital assets.
Why the crypto market weakened
According to several analysts, two factors amplified this decline:
- Excessive levrage – many traders had accumulated risky long positions.
- A climate of uncertainty – linked to the macroeconomy and liquidity conditions.
The cascading liquidation of these positions accentuated the downward momentum and further weakened the market. Furthermore, analysts point out that the economic situation and the high use of levrage by traders amplified this momentum. The combination of these factors led to more than 1.7 billion $ in liquidations in just 24 hours, affecting several hundred thousand positions. This situation highlights the crucial importance for investors to maintain prudent risk management and closely monitor the correlation between Bitcoin and the rest of the crypto market.
Outlook: 112,000$ as a key level for Bitcoin
Now, attention is turning to the 112,000$ threshold:
- If it breaks down sharply, the market could experience a new wave of massive selloffs.
- If the support holds, a stabilisation phase could begin after this severe correction.
For crypto investors, this volatility is a reminder of the importance of prudent risk management in a still unstable market.
