Crypto Liquidations Near Monthly High as Altcoin Season Comes to an Abrupt End

Weekend Losses Spill Into the New Week The crypto market was hit by a wave of massive long liquidations over the weekend, which only intensified on Monday. More than $1 billion in open positions was wiped out across markets, with Ethereum and smaller altcoins suffering the hardest blow. Bitcoin’s drop to $114,000 triggered a chain reaction across other assets. In the past 24 hours alone, liquidations totaled $441.78 million — the highest since August 29. At one point, more than $1 billion was erased in just a single hour. Even as trading activity picked up at the start of the week, the sell-off deepened.

From Major Tokens to Small Caps Liquidations usually hit “blue-chip” tokens where traders are heavily positioned in derivatives markets. This time, however, the wipeout extended to smaller assets, which saw $109.7 million in liquidations. Tokens that had recently built up strong liquidity — including ASTER, WLFI, and PUMP — were not spared. Even BNB saw long positions unwound after briefly climbing above $1,077.

Altcoin Season Draws to a Close Last week’s rally in altcoins extended what many dubbed an altcoin season. Historically, however, such periods are short, often lasting around two weeks. The altcoin index, which just days ago hit a peak of 100 points, has now plunged back to 67 points. The rally stretched across roughly a month, but its peak was fleeting. While established coins notched new highs, smaller tokens enjoyed only short-lived gains. Bitcoin dominance has since rebounded to 56.2%, while Ethereum’s share slipped to 12.8%. Since 2024, altcoins have seen three major bursts of expansion, with the most recent one marking the longest hot streak yet.

Ethereum Leads in Liquidations Ethereum (ETH) was the biggest casualty of the sell-off. The token slid to $4,139.61, with liquidations totaling as much as $465 million in a single day. By Monday, long liquidations continued across the board, with BTC dipping under $113,000 and smaller altcoins adding more than $263 million in liquidations. The episode highlighted once again how the market remains prone to cascade liquidations, wiping out even the most optimistic traders. Previous liquidity clustering around ETH had suggested a potential drop to $3,900 if a full cascade took place. Open interest on ETH has already fallen from nearly $30 billion to around $27 billion. ETH is widely viewed as a barometer for the altcoin market. The bright spot is that the DeFi sector appears less vulnerable for now — most loans remain conservatively structured, with major liquidation levels not kicking in until below $1,700.

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