Crypto prices tumbled hard during Asian trading hours, wiping out nearly 4% of the market’s capitalization in a single session.
The broad downturn marked the first major correction after weeks of steady gains that had driven digital assets to record highs.
The speed of the drop caught some traders off guard, but several analysts had already highlighted potential risks.
Wedson explained that Bitcoin’s short-term holder realized price currently sits at $111,400, a level that institutions should have secured much earlier. He also noted that Bitcoin’s Sharpe Ratio, which is used to measure returns against risk, has weakened compared to 2024.
Considering this, he stated:
“Those who bought BTC at the end of 2022 are happy with +600% gains, but those accumulating in 2025 should reconsider their strategy.”
The sudden price correction has sparked the largest liquidation event of the year.
Ethereum traders endured the most pain, with $498 million in liquidations, followed by Bitcoin at $284 million. XRP and Solana also saw positions worth $78 million and $95 million liquidated, respectively.
These figures underline the inherent volatility of crypto markets. When leverage builds up during bullish runs, a rapid correction can wipe out billions in unrealized gains.
So, this sharp reset highlights why traders, particularly institutional entrants, remain cautious about the emerging industry even as adoption grows.
