The crypto market has undergone a significant correction. In the past 24 hours, the liquidation of $716 million impacted over 210,000 investors.
Several whales made notable moves, from taking profits on long positions in ETH and XRP to opening short positions on BTC, ETH, and SOL. These actions reflect the cautious sentiment of large investors and signal potential further volatility in the market.
Massive Liquidation Wave Hits Market
According to CoinGlass data, the crypto market saw $716 million liquidated in the past 24 hours at press time, affecting over 210,000 investors. Most positions were long, and $582 million was liquidated, indicating that many investors bet incorrectly during this correction.
Post-correction, Bitcoin (BTC) dropped to $101,000 while Ethereum (ETH) fell 4% to $2,400, and Solana (SOL) lost 6% of its value, trading around $175.
This high liquidation level is a consequence of the market overheating last week. Bitcoin reclaimed the psychological $100,000 mark, while ETH surged over 40% to $2,500. The Fear & Greed Index hit 78, signaling excessive greed.
The simultaneous decline of major coins created significant pressure on the market, pushing many retail investors into losses. Meanwhile, whales seized the opportunity to take profits and adjust strategies.
Crypto Whales Take Profits and Shift to Shorting
Crypto whales swiftly capitalized on the market correction. According to Lookonchain, one whale closed long positions on ETH and XRP, locking in approximately $7.5 million in profits.
Transaction data shows this whale closed 17,702 ETH (worth $14.8 million) and 9.83 million XRP ($24.2 million). Simultaneously, the whale opened a new long position on SOL with 13,871 SOL (worth $2.5 million), but is currently facing an unrealized loss of $560,000.
On May 12, OnchainLens reported that this same whale deposited 5.84 million USDC into Hyperliquid and opened a 2x leveraged long position on XRP.
Another whale, which lost $5.73 million on ETH in late February 2025, recently gained $4.71 million in profits on ETH, demonstrating the resilience and acumen of large investors.
Meanwhile, some crypto whales shifted to shorting to capitalize on the downward trend. A whale labeled “Hyperliquid 50x Address” reversed a short position and earned $1.18 million in profits. The whale then quickly closed the position to lock in gains.
On the same day, another whale deposited an additional 10 million USDC into Hyperliquid to increase short positions on BTC, ETH, and SOL, valued at $14.8 million (BTC), $13.3 million (ETH), and $2.5 million (SOL), respectively. These moves suggest crypto whales anticipate further short-term market corrections.
Short-Term Downward Pressure but Long-Term Potential Remains
Whales’ profit-taking and shorting are creating significant short-term pressure on the market. However, long-term signals remain positive.
Analyst Davinci Jeremie’s observation of Bitcoin supply on exchanges suggests, “A supply shock is brewing.” Meanwhile, analyst Merlijn The Trader shared a chart indicating BTC has exited the “accumulation cylinder.”
“Historically, this is when things go parabolic. If this plays out, $500K+ isn’t hopium, it’s structure,” Merlijn confidently stated.
However, veteran analyst Michaël van de Poppe offers a different perspective, suggesting the altcoin bear market has ended, driven by Bitcoin’s dominance peaking.
“Strong bearish divergence on the weekly timeframe indicating that the #Bitcoin dominance has peaked. The end of the bear market for #Altcoins,” Michaël van de Poppe shared.
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