The week began with a downturn for the digital currency market.
A widespread sell-off on Monday triggered significant drops in cryptocurrency values. Data from Coinglass indicated that approximately $1.5 billion in positions were liquidated, contributing to the decline in prices for major currencies such as Bitcoin and Ethereum.
Coinglass reported that over 407,000 traders had their positions liquidated in the crypto derivatives market during the 24-hour period leading up to Monday. According to the crypto trading platform, this marked the largest liquidation event seen since March 27th.
Bitcoin experienced a drop of up to 3% on Monday, trading around $111,000, before recovering some ground to climb back above $113,000.
Ethereum saw a steeper decline, dropping as much as 9% to around $4,000, before rebounding to approximately $4,200. Midmorning on Monday, it was trading down by about 6%.
Other well-known cryptocurrencies also suffered losses. Worldcoin, FLOKI, and Dogecoin each experienced declines exceeding 9% on Monday, placing them among the hardest-hit within the crypto market, according to CoinMarketCap data. XRP was down 4%, and Solana decreased by 7%.
According to a Monday note from Linh Tran, a market analyst at XS.com, the crypto market had exhibited signs of “overcrowded” long positions leading up to the recent liquidations.
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Tran commented that this liquidation event represents “a healthy process” that mitigates the potential for a sharp long squeeze and establishes a stronger base for sustained growth. She suggested that Bitcoin appeared to be entering a “correction phase.”
Tran added, “This pause is seen as necessary to absorb profit-taking pressure, reduce short-term leverage, and lay the groundwork for a more stable price base.”
David Morrison, a senior market analyst at Trade Nation, noted that “Sentiment has been dented by the scale of the declines, and much now depends on whether these markets can bounce back quickly, or head lower to test more significant support levels,” in his commentary on the Monday sell-off.
Overall, the downturn hasn’t overshadowed the strong performance of crypto in 2025. Prices have generally been rising, fueled by optimism around potential interest rate cuts, more accommodating regulations, and other pro-crypto developments promoted by the current administration. Bitcoin has increased by 21% since the beginning of the year, while Ethereum is up 26%.