Summary of this article
Crypto markets tumble as $1.5 billion in longs liquidated.
Ethereum falls 9 per cent, Bitcoin drops 3 per cent, other tokens also slide.
Volatility and fading institutional momentum raise investor caution alerts.
Cryptocurrency markets had a rough start to the week as traders were shaken by a sudden wave of sell-offs. Significant tokens, such as Bitcoin and Ethereum, saw sharp drops which were indicative of persistent volatility and the risk of leveraged positions. For investors, Monday reflected how quickly sentiment can shift, even after recent rallies.
According to Bloomberg, over $1.50 billion in long positions were liquidated, pushing Ethereum down nearly 9 per cent to $4,075 and Bitcoin about 3 per cent to $111,998. The significant declines in other tokens, like Solana, Algorand, and Avalanche, also reflected the wide-ranging effects on the cryptocurrency market.
Reports from Coinglass highlight that this was the largest wave of crypto liquidations since at least March 27, 2025. Market commentators have said that although there was no single clear trigger, the sell-off was remarkable in both breadth and depth, affecting traders across multiple platforms.
Timothy Misir, head of research at BRN, told Bloomberg that while institutional support and exchange-traded funds (ETFs) remained in place, the short-term set-up is fragile. He cautioned that Bitcoin would need to climb above $115,000 to avoid further losses, and highlighted the risks posed by leveraged trading and sudden market shifts.
Meanwhile, more than 407,000 traders had positions liquidated over 24 hours, dragging the digital-asset market capitalisation below $4 trillion. Ether perpetual futures funding rates went negative, indicating that short sellers are paying longs to hold onto their investments. George Mandres, senior trader at XBTO Trading also expressed concerns over the fading momentum in digital-asset treasuries, which had previously helped support token gains.
Since early July this year, the price of Bitcoin has mainly fluctuated between $110,100 and $120,000. Ethereum and Solana had separate increases in 74 per cent and 52 per cent during that time frame, respectively, underscoring the disparity in growth between the leading cryptocurrencies. Analysts say crypto’s unique volatility, combined with shrinking inflows from large institutional players, makes it particularly sensitive, reinforcing the need for caution among investors.
As of Tuesday, Bitcoin was trading at $113,073, up 0.17 per cent, while Ethereum was trading at $4,200, up 0.34 per cent. Solana was down 2.42 per cent to $219.53, showing that while some tokens have regained ground, market uncertainty persists.
