The crypto market opened the week with a sharp sell-off that erased more than $151 billion in market capitalization in a single day. CoinGlass data shows leveraged traders lost over $1.7 billion in 24 hours, with more than 402,000 accounts liquidated. Ethereum felt the biggest impact, accounting for nearly $500 million of the liquidations, while Bitcoin saw roughly $284 million wiped out.
Major altcoins including XRP, Solana, Dogecoin and Hyperliquid (HYPE) fell roughly 7–12%, reversing recent gains and bringing the recent altcoin rally to an abrupt halt. The flashpoint came when Bitcoin slipped beneath $113,000, setting off margin calls and automatic sell orders. Liquidations accelerated quickly: within about 30 minutes the total had surged past $1 billion, highlighting how fragile highly leveraged positions can be during rapid moves.
Bitcoin dominance climbs as altcoins lose ground
The downturn reshaped market sentiment almost immediately. The n Index, which had recently hit 100, plunged to 64, indicating a rotation of capital back into Bitcoin.
BTC dominance rose to about 57% while ETH’s share fell to roughly 13%.
Historically, altcoin seasons tend to run only a few weeks before liquidity reverts to Bitcoin, and some analysts say this cascade of liquidations may have cut that cycle short. Smaller, speculative tokens such as ASTER, WLFI and PUMP were among the worst affected, contributing to more than $263 million in liquidated altcoin longs. A corrective purge or a lasting bearish signal?
Many market observers view the drop as a necessary deleveraging rather than the end of the broader bull trend. The purge removed overextended positions, potentially setting firmer support levels for longer-term holders.
Institutional flows appeared to remain steady last week, suggesting larger investors are still willing to add on weakness. On-chain metrics support that narrative: around 420,000 ETH left exchange wallets, consistent with accumulation rather than distribution amid short-term volatility.
Looking ahead, traders are watching key levels: Ethereum needs to hold above about $4,100 and Bitcoin’s stability in the $112,000–$114,000 band will be critical for near-term confidence.
Analysts say the correction could be laying the groundwork for the next leg higher in the ongoing bull market, though caution remains given the scale of recent liquidations. Cover image from ChatGPT, ETHUSD chart from TradingView
