The crypto market correction saw a sharp turn, with $716M liquidated in 24 hours, affecting over 210,000 whale investors.
Several giants executed noteworthy transactions, including establishing short positions on BTC, ETH, and SOL and realizing profits on long positions in ETH and XRP. These actions indicate the cautious stance of substantial investors and suggest that the market may experience additional volatility.
The market is experiencing a significant liquidation wave
The crypto market experienced a $716 million liquidation in the past 24 hours, as indicated by CoinGlass data. This event had an impact on more than 210,000 investors. Most positions were long, and $582 million was liquidated, suggesting that many investors made incorrect bets during this correction.
After the correction, Bitcoin (BTC) plummeted to $101,000, Ethereum (ETH) plummeted by 4% to $2,400, and Solana (SOL) lost 6% of its value, trading at circa $175.
This elevated level of liquidity is a direct result of the market’s inflation last week. ETH experienced a 40% increase to $2,500, while Bitcoin regained the illusory $100,000 threshold. The Fear & Greed Index reached 78, indicating an overabundance of greed.
The market was subjected to substantial pressure due to the concurrent decline of main coins, which resulted in numerous retail investors incurring losses. At the same time, whales capitalized on the opportunity to modify their strategies and gain profits.
Crypto whales accumulate profits and transition to shorting
Crypto whales promptly capitalized on the market correction. One whale closed long positions on ETH and XRP, resulting in an estimated $7.5 million in profits, according to Lookonchain.
According to transaction data, this whale closed 17,702 ETH (equivalent to $14.8 million) and 9.83 million XRP ($24.2 million). Concurrently, the whale initiated a new long position on SOL with 13,871 SOL (equivalent to $2.5 million). However, it is presently experiencing an unrealized loss of $560,000.
On May 12, OnchainLens disclosed that the same whale deposited 5.84 million USDC into Hyperliquid and initiated a 2x leveraged long position on XRP.
The resilience and acumen of large investors are illustrated by the recent $4.71 million in profits that another whale, which suffered a $5.73 million loss on ETH in late February 2025, has achieved.
In the interim, a few crypto billionaires transitioned to shorting to exploit the downward trend. A whale identified as “Hyperliquid 50x Address” reversed a short position and generated $1.18 million in profits. The whale promptly closed the position to secure its gains.
Another whale deposited an additional 10 million USDC into Hyperliquid on the same day to increase short positions on BTC, ETH, and SOL. These positions are assessed at $14.8 million (BTC), $13.3 million (ETH), and $2.5 million (SOL), respectively. These actions indicate that crypto billionaires are anticipating additional short-term market corrections.
Long-Term Potential Remains, Despite Short-Term Downward Pressure
The market is experiencing substantial short-term pressure due to the whales’ profit-taking and shorting. Nevertheless, there are continuing positive long-term indicators.
Analyst Davinci Jeremie’s assessment of the Bitcoin supply on exchanges implies that “a supply shock is imminent.” In the interim, analyst Merlijn, the Trader, published a chart that suggests that BTC has departed the “accumulation cylinder.”
“Historically, this is when things go parabolic. If this plays out, $500K+ isn’t hopium, it’s structure,” Merlijn confidently stated.
Nevertheless, veteran analyst Michaël van de Poppe provides an alternative viewpoint, positing that the altcoin bear market has concluded due to the apex of Bitcoin’s dominance rate.
“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.
