$1.5 Billion Liquidated in Crypto Market’s Biggest Selloff Since March, Ether and Bitcoin Plunge

The crypto market faced its biggest selloff since March as more than $1.5 billion was liquidated in just 24 hours. The wave of forced selling pushed down the prices of leading tokens, including Ether and Bitcoin, and shook investor confidence across the digital asset sector.

Ether Falls 9% After Heavy Liquidations

Ether, the second-largest cryptocurrency by market cap, suffered one of the steepest drops. It fell by as much as 9%, trading near $4,075 after almost $500 million worth of leveraged long positions were liquidated. The heavy losses highlighted how vulnerable Ether remains when speculative bets unwind quickly.

Bitcoin also came under pressure. The world’s largest cryptocurrency slid about 3% during the selloff, hitting a daily low of $111,998. Other major tokens such as Solana, Algorand, and Avalanche mirrored the downward trend, showing that the market-wide slump affected almost every corner of the crypto ecosystem.

Declining Demand From Treasury Firms Adds Pressure

Earlier this year, demand from digital-asset treasury firms played a big role in lifting Bitcoin and Ether to record highs. Publicly traded companies like Michael Saylor’s Strategy and Japan’s Metaplanet Inc. added billions to their holdings, sparking optimism that corporate demand would keep prices strong.

However, that momentum now seems to be fading. Shares of these treasury-focused companies have slipped in recent weeks, showing a decline in appetite for large-scale crypto purchases. According to George Mandres, senior trader at XBTO Trading:

“It feels like the market needs a breather, with some participants concerned that the DAT-trade is losing steam and there are no more meaningful inflows on the horizon.”

(DAT refers to digital-asset treasuries, the corporate holdings that helped fuel earlier rallies.)

Over 400,000 Traders Wiped Out

The selloff’s impact was not limited to institutional players. Retail traders also faced severe pain. Data showed that more than 407,000 crypto traders were liquidated within 24 hours. This made it one of the most painful trading days for the sector in 2025.

The forced unwinding of positions pushed the total market capitalization of cryptocurrencies below $4 trillion, reversing weeks of gains.

Gold Surges as Investors Flee to Safe Havens

While crypto markets bled, traditional safe-haven assets told a very different story. Gold prices surged to record levels, nearly touching $3,720 an ounce on Monday. Silver also gained during the same period, highlighting how cautious investors are turning back to traditional hedges as digital assets face turbulence.

The diverging performance between crypto and gold shows how investor sentiment is shifting. Instead of doubling down on digital assets, many are moving funds into commodities that historically perform well in times of uncertainty.

Outlook for the Crypto Market

Looking ahead, analysts believe the crypto market may stay volatile in the short term. On one hand, large liquidations often signal a reset, clearing out excess leverage. On the other, fading demand from digital-asset treasury firms could mean slower inflows and weaker support at current price levels.

If institutional adoption slows while retail investors remain cautious, the market could face further corrections. However, with the next Bitcoin halving event approaching in 2026 and continued growth in blockchain applications, long-term sentiment around digital assets remains constructive.

For now, traders will closely watch how Bitcoin and Ether recover from this latest setback and whether treasury firms renew their interest in crypto holdings.

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