Massive Liquidation of Cryptocurrencies Worth Over $600 Million on May 13, with Bitcoin and Ethereum at the Forefront of Selling Spree
Crypto Market Experiences Massive Liquidations, with $600 Million Wiped Out in a Day
(Note: While the exact reference to an $600 million liquidation event on May 13, 2025, could not be found, we'll discuss the recent liquidation events happening in the crypto market and their impact on major cryptocurrencies like Bitcoin and Ethereum.)
The crypto market went through a turbulent day recently, with more than 187,000 traders facing liquidation and cumulative losses exceeding $600 million. This significant event showcased the precarious nature of the crypto market and highlighted the leading roles that Bitcoin (BTC) and Ethereum (ETH) play in it.
Bybit Takes the Lead
Bybit emerged as the platform witnessing the highest liquidation volume, recording losses amounting to $320.69 million within 24 hours. An impressive $11 million BTC order accounted for the single largest liquidation of the day. Interestingly, a staggering 88.36% of all liquidated orders on Bybit involved short positions, suggesting a bearish market sentiment among traders.
Other notable platforms include Binance, which reported $192.89 million in total liquidations, while OKX recorded $92.76 million. HTX saw substantial liquidation activity, with 76.42% of those impacting long-side positions.
Market Sentiment: Bull vs Bear
Bitcoin led all assets in liquidation value with $151.62 million exchanged hands during the sell-off. Ethereum followed closely behind with $140.57 million in liquidated positions. Intriguingly, meme coins such as PEPE and TRUMP were not spared, losing a combined total of $15.33 million through liquidations.
Market Volatility, Sentiment, and Uncertainty at Play
Sudden market volatility, changes in market sentiment, and uncertainty might have triggered the dramatic liquidation event. With swift price swings and an increased selling pressure, leveraged positions were vulnerable to being liquidated to cover losses, as observed during this period when Bitcoin dipped below $101,000.
Lessons Learned from the Liquidation Event
Given the widespread impact of the liquidation event, it's essential for traders to carefully manage their positions in line with the market's movements and potential volatility. High leverage can be equally beneficial and perilous, underscoring the need to trade responsibly and mitigate risks effectively.
- With $320.69 million in losses, Bybit experienced the highest liquidation volume during the turbulent day in the crypto market.
- Bitcoin, with $151.62 million in liquidation value, led all assets in the sell-off, followed closely by Ethereum with $140.57 million in liquidated positions.
- The liquidation event could have been triggered by sudden market volatility, changes in market sentiment, and uncertainty, causing Bitcoin to dip below $101,000.
- Traders must carefully manage their positions and leverage, learning from the recent event to trade responsibly and mitigate risks effectively.
