The first six months of 2025 brought a hard blow to the cryptocurrency market, with an intense wave of liquidations of long positions dominating the activity. The traders who bet on the rise in prices underwent a severe setback while the feeling of the market has suddenly reversed. The result was a wave of automatic positions of positions on trading platforms as prices dropped. But after months of difficulty, is a rebound finally in sight?
In short
- More than $ 2.2 billion in crypto positions were liquidated on February 3, the long position traders having been the most affected.
- Trump's prices plans sparked a massive and in -depth panic sale of the market in early February.
- April 7 marked a hollow on the market, cleaning long betting on the outskirts and preparing a potential rebound.
More than $ 1.8 billion in long -liquidated positions after a brutal market shock
This slowdown was the most visible in early February, especially on the 3rd, when nearly $ 2.23 billion in leverage crypto positions were forcibly closed. Long positions represented a large part of this figure, with approximately $ 1.88 billion liquidated. The data, reported by the Crypto Coinglass analysis company, showed that more than 729,000 traders have been impacted in a single day, which indicates how extended the event was.
Volatility has not come out of nowhere. The price shock that day was closely linked to an unexpected announcement by US President Donald Trump. The decision to impose a new series of customs duties has shaken the financial markets and launched a safety rush. For the crypto sector, this meant a massive sale and a sudden outcome of risky positions.
Triple blow to markets, fueling the fall of cryptos in February
Other news that aggravated the event occurred on February 25, 2025, adding fuel to an already inflamed market. What had started as a nervous environment quickly turned into a cascade of panic sales and forced liquidations.
Here is what added pressure and intensified the collapse of the crypto market:
- On February 25, Trump confirmed that his administration would carry out the planned commercial prices, shaking the confidence of investors.
- Walmart has issued a warning on its profits, accentuating bad news weighing heavily on the feeling of the market.
- The minutes of the federal reserve meeting revealed a more aggressive tone concerning future policy, still weighing on the mood of investors.
- This event has led to around 1.57 billion dollars in liquidations, according to Coinglass, the long positions absorbing most of the damage.
- Bybit also recorded $ 666 million in positions eliminated that day: almost 90 % of them were long positions taken off guard.
Although Bitcoin and Ethereum were affected, the fall was even more pronounced in the wider Altcoin market. Solana had reached a summit in mid-January, winning a strong appeal to investors. But this rally quickly faded. At the end of February, the Token fell by more than 50 %, erasing a large part of the previous gains. This rapid fall sparked more than $ 150 million in liquidations linked to its perpetual term contracts.
The sale continued until the beginning of March, with prices decreasing throughout the market. Bitcoin fell briefly at $ 82,000, and many major digital assets have reached levels never seen for several months.
The crypto stabilizes after the thinning, signs of recovery emerge
While the Crypto market reached a new annual hollow on April 7, most of the long over -indebted positions had already been eliminated. This has helped reduce excessive risk and created space for a possible rebound.
Historically, the large -scale liquidation of long positions tends to release the risk of leverage and stabilize the market, facilitating the formation of a hollow and initiating a phase of “recovery after reduction of the lever effect“.
Quince
The signs of this rebound appeared later in the month. On April 23, the market recorded its greatest liquidation for the uncovered sale of the year, with more than $ 600 million liquidated-around 88 % of the total liquidations that day, according to Corclass. They said:
Despite this change, long liquidations remained generally much greater during the period. Even at their peak, losses on short positions have never matched the massive magnitude of long erasure observed in early February. Corceglass noted this imbalance as a sign that the bullish feeling remained strong on the entire market.
In addition, the Crypto market is currently posting positive signals, the feeling continuing to improve. Bitcoin is negotiated around $ 111,000, after closing over $ 112,000 even yesterday-a new historic record. Ethereum is also increasing, with an increase of more than 6 % in the last 24 hours. Other major altcoins follow the trend, indicating a renewed force throughout the digital asset sector.
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