Over the past 24 hours, roughly $200 billion has left the crypto market, bringing its total market capitalization back to $3.84 trillion.
This is the lowest level of total cap since August 6th, but remains within the lateral channel for six weeks, despite a massive sale.
Coinglass reported that the total liquidation exceeded $930 million as approximately 205,000 traders have been liquidated in the past day, washing away long leveraged Bitcoin positions. Other analysts have suggested that the exchange is dumping crypto assets to settle longer positions.
Today’s painful, but unusual, market slump has resulted in a 9% revision of the entire crypto market since its peak on August 14th.
Yesterday was one of the biggest #Bitcoin Long liquidation events since December 2024, and the price has been reduced, clearing out more than $150 million long outs. pic.twitter.com/okcnbmwl0j
– GlassNode (@GlassNode) August 25, 2025
Bitcoin Drags the Market
The big dump was caused by Bitcoin, crashing into a seven-week low of less than $109,000 in early Asian trading on most exchanges on Tuesday morning.
This was caused by Bitcoin Zilla, which sells an entire batch of 24,000 btc, which exceeds $2.7 billion, which means that the assets have plummeted $4,000 in just a few hours.
According to GlassNode, Bitcoin is below the average cost base ($110,800) of investors over the 1-3 month period that accumulated during the May-July rally. “Historically, failure to hold above this level has often led to market weaknesses and potentially deeper corrections over several months,” he warned.
Currently, the BTC correction totals reach 12%, which is much shallower than the pullbacks in September 2017 and 2021, a bull market period when assets of 36% and 24% have been withdrawn, respectively.
A retreat between these two levels this September allowed Bitcoin prices to return to $87,000 before Bull Market resumed.
Altcoins bleed
As always, Altcoins have reduced $186 by Solana over 11%, Dogecoin drops by 10% in a fall, Cardano slips to 9% for $0.83, and ChainLink reduces 11% to $23.30, to $23.30.
Other altcoins that are painful include high lipids, SUI, avalanches, and litecoins. Ethereum lost 7% that day, but remains within the lateral channel and is already beginning to recover at the time of writing, trading at over $4,400 again. However, ETH has lost more than 11% since its all-time high just two days ago.
“When you buy dip, it never feels good.” Dip comes when emotions drop. Writing down numbers can be a disciplined form,” advised Bitise Cio Matt Hougan.
When the crypto market rips down, everyone says:
Then when the dip occurs they don’t act because the market doesn’t think it’s “not feeling well” at that point.
One solution: Write the price you want to buy with sticky notes…
– Matt Hougan (@matt_hougan) August 25, 2025
