The global cryptocurrency market faced a major correction this week as Bitcoin and Ethereum led a sharp sell-off, wiping out billions in market value within hours. The downturn, driven by escalating US–China trade tensions, a strengthening US dollar, and over $5 billion in leveraged liquidations, saw Bitcoin fall 7.5% to $112,578 and Ethereum drop 13% to $3,799.
Analysts say the correction, though severe, may be a healthy reset within the ongoing 2025 bull cycle. Data from CoinGlass revealed that over $5.6 billion in leveraged long positions were liquidated within 24 hours, one of the largest single-day events this year.
The sell-off intensified after Washington imposed 100% tariffs on Chinese tech imports, pushing the dollar index above 107 and pressuring risk assets like crypto. Adding to market unease, the U.S. SEC delayed spot ETF approvals for Solana and XRP due to a government shutdown, leading to a broader retreat across altcoins.
Despite the chaos, experts suggest that the correction may clear excessive leverage and speculative positions, paving the way for a more stable market. Bitcoin’s critical support lies between $109,000 and $114,000 — if it holds, analysts expect a rebound toward $120,000, marking the start of a new accumulation phase.
