Intense Crypto Market Sell-Off on May 13, Liquidations Exceed $600 Million, Led by Bitcoin and Ethereum
Sell-off Spectacle: The Cryptocurrency Bloodbath of May 13, 2025
The cryptocurrency markets took a brutal beating on May 13, 2025, experiencing one of the most extreme single-day losses in the second quarter. Over 187,000 traders felt the sting of traders with high leverage, as $600 million in crypto positions were liquidated amid a tempest of market volatility [1]. Bybit, the infamous crypto exchange, led the charge with an eye-popping $320 million in liquidations, punctuated by an astounding $11 million BTC order [1].
Bitcoin and Ethereum wielded the megaphone in this sell-off, with combined losses of $292 million. Bybit's tsunami of bearish bets claimed 88.36% of the platform's liquidations, underscoring a chorus of pessimism among traders. Alternatively, Binance witnessed long positions bearing the brunt of the storm, with $192.89 million in total liquidations [1]. Meanwhile, difficulties ran rampant on OKX, with losses totaling $92.76 million, and HTX confronting 76.42% long-side positions [1].
The sea change in sentiment was evident across exchanges, as some traders gambled on a rally while others hunkered down for the inevitable downturn. Beyond the big players, altcoins and speculative assets felt the lash of the sell-off. PEPE garnered $8.18 million in liquidations, whispering the fates of similarly memed tokens such as TRUMP, which trailed at $7.15 million [1].
The Rollercoaster Ride of Bitcoin and Ethereum
Bitcoin and Ethereum took center stage in this bloody spectacle, with Bitcoin wiping out $151.62 million in positions, and Ethereum decimating $140.57 million [1]. XRP, Dogecoin, and Solana clung to their remnants, with losses of $32.34 million, $22.84 million, and $17.92 million respectively [1].
In the face of this relentless sell-off, even seemingly resilient assets were not immune to liquidation. Bit by bit, traders with overleverage dived headfirst into the pool of priceless digital possessions, such as Bitcoin and Ethereum. This whirlwind of activity served to highlight the primacy of these assets within the market's open interest, and their vital role in determining general market behavior.
Frail foundations, Volatile Legs
The origin of this sell-off can be traced to the volatile nature of the cryptocurrency market, characterized by thin liquidity and amplified reactions to even minor trading flows. This fragility poses the risk of intense sell-offs, propelling liquidations and outlining the precariousness of the market's current structure [4].
In the days leading up to the May 13, 2025 carnage, Ethereum enjoyed a significant rally, with its price soaring approximately 49% from a local bottom of $1,800 to $2,600 [2][3]. This rapid appreciation may have been a catalyst for profit-taking, sparking spikes in liquidations. Meanwhile, Bitcoin and Ethereum ETFs experienced outflows on May 13, 2025, potentially reflecting investor skepticism or profit-taking, accentuating market volatility [4][5].
Large whale activities further fueled this volatile environment, with an Ethereum whale executing a profitable 4,685 ETH sale at $2,457 [3]. These forces, coupled with speculative trading effects on meme tokens, have been speculated as key factors leading to the magnitude of the single-day liquidation event on May 13, 2025.
- Traders who hold Bitcoin and Ethereum in their wallets witnessed a significant loss of $392.2 million on May 13, 2025, due to the extreme volatility observed in the cryptocurrency market.
- The liquidation of $600 million in cryptocurrency positions on May 13, 2025, led by Bybit, underlined the importance of Bitcoin and Ethereum in the market, as these assets accounted for a large portion of the total liquidations.
- The sell-off on May 13, 2025, was not just limited to Bitcoin and Ethereum, as it affected various other cryptocurrencies as well, with XRP, Dogecoin, and Solana recording losses of $32.34 million, $22.84 million, and $17.92 million respectively.
- Crypto trading on May 13, 2025, highlighted the vulnerability of the cryptocurrency market, particularly due to thin liquidity, amplified reactions to trading flows, and the risk of intense sell-offs, emphasizing the need for caution and risk management in crypto investing and trading.
