$1B Liquidations and 6% Correction

By Ginger Perry, updated June 13, 2025

Crypto market crash today shocked traders and investors alike. The crypto market took a major hit on June 13, 2025, as prices across the board plummeted, wiping out billions in value and leaving traders reeling. With more than $1 billion in liquidations and an average 6% correction, the day marked one of the steepest short-term declines of the year. Here’s what happened, why it matters, and what investors should watch next.

What Triggered the Crash?

Several factors contributed to the sudden drop, but no single event caused the crash. Instead, it was a combination of market dynamics and macroeconomic pressures:

• Inflation Data in the U.S.: A hotter-than-expected CPI report sent shockwaves through financial markets. The data suggested inflation isn’t cooling down fast enough, increasing pressure on the Federal Reserve to keep interest rates higher for longer.

• Risk-Off Sentiment: Global investors are showing a growing appetite for safer assets. Stocks dropped as well, and crypto followed in tandem, showing that it’s still closely correlated with traditional financial markets.

• Overleveraged Positions: As usual during crypto corrections, leveraged positions amplified the damage. Within hours, more than $1 billion worth of long positions were liquidated on exchanges like Binance, OKX, and Bybit.

• Market Sentiment Shift: Fear quickly spread on platforms like Twitter, Reddit, and Telegram. When traders panic, they often rush to sell, which deepens the fall.

Major Coins Felt the Heat

Almost every major cryptocurrency saw a noticeable drop:

• Bitcoin (BTC): Fell from around $70,500 to under $66,000 — a sharp 6.5% drop within 24 hours.

• Ethereum (ETH): Dropped by more than 7%, sliding below the key $3,400 level.

• Solana (SOL): Tumbled over 10% as DeFi and NFT activity cooled.

• Avalanche (AVAX) and Cardano (ADA): Both recorded losses of over 9%.

Even stablecoins like USDT and USDC briefly depegged on some platforms due to high demand for liquidity.

$1 Billion Liquidated: What Does That Mean?

When crypto prices fall rapidly, traders using leverage (borrowing funds to increase their position size) are forced to close their positions — this is called a liquidation. According to data from Coinglass:

• Over 240,000 traders were liquidated in 24 hours.

• The single largest liquidation happened on Binance: a BTC/USDT long worth $11.2 million.

• Ethereum, Solana, and Dogecoin were also among the top liquidated assets.

These liquidations create a domino effect, where forced selling pushes prices even lower, triggering more liquidations — a vicious cycle that can spiral quickly.

Fear Returns to the Market

The Crypto Fear & Greed Index, a popular sentiment tracker, fell from 67 (Greed) to 41 (Fear) in one day. The mood has clearly shifted. On social media, traders are posting loss screenshots, while influencers urge followers to “stay strong” and “buy the dip.”

But many retail investors, especially newcomers who bought during the spring rally, are feeling uncertain. Some are calling it a mini bear market. Others think it’s just a healthy correction.

Is This the Start of a Bigger Downturn?

It’s too early to say if this marks the beginning of a long-term bear phase. Some analysts see the crypto market crash today as a needed reset after months of consistent gains:

“Corrections are a normal part of market cycles. This flush-out was overdue,” said crypto analyst Elena Varga. “If Bitcoin holds the $65K support zone, the uptrend can resume.”

Others are more cautious. High interest rates, regulatory uncertainty (especially in the U.S. and EU), and upcoming unlocks of major token supplies could keep pressure on prices in the short term.

What Should Investors Do Now?

For long-term holders (HODLers), the best strategy might be simply to sit tight. If your investment thesis hasn’t changed, neither should your strategy. For active traders, however, it’s a time to reassess:

• Don’t chase pumps or panic sell. Emotional decisions rarely end well.

• Watch key support levels. BTC at $65K and ETH at $3,200 are important psychological zones.

• Manage your risk. Use stop-losses and avoid high leverage in volatile conditions.

Final Thoughts

June 13 reminded everyone that crypto is still volatile — and fast-moving. A day of gains can be erased in hours, and euphoria can flip to fear instantly. But volatility also creates opportunities.

Whether this was just a shakeout or the start of a deeper correction remains to be seen. What’s clear is that the crypto market crash today is once again testing investor patience — and resilience.

Stay alert, stay educated, and remember: in crypto, winter and summer can happen in the same week.