The cryptocurrency market recently experienced a seismic event, with Shiba Inu (SHIB) crashing to a new 2025 low amid what some are calling the "largest liquidation event in crypto history." This dramatic downturn saw billions wiped from the market, impacting over a million traders and highlighting the volatile nature of digital assets in the face of broader economic uncertainties.
Crypto Market Faces Historic Liquidation
The past week witnessed an unprecedented level of turmoil in the crypto space, culminating in a colossal market sell-off on Friday. Triggered largely by macroeconomic concerns and exacerbated by pre-existing market weakness, this event saw approximately $19.36 billion eradicated from the market. Data indicates that over 1.6 million traders were liquidated, a staggering figure that underscores the severe impact of the volatility. This massive deleveraging event has left a significant mark, signaling a period of intense pressure across the entire cryptocurrency ecosystem.
Shiba Inu's Volatile Plunge and Recovery Attempt
Amidst this broader market carnage, Shiba Inu (SHIB) plummeted to $0.0000085 on Friday, marking its lowest point so far in 2025. This sharp decline followed a consistent downward trend from its October 6 high. However, the meme coin quickly demonstrated its resilience as bulls swiftly entered the market, initiating a rapid rebound that saw SHIB erase an "extra zero" and climb back above the $0.00001 mark. While still down significantly in the short term, currently trading lower by over 11% in 24 hours and 16% weekly, momentum indicators suggest oversold conditions, hinting at the potential for a relief rally or "dead cat bounce" in the immediate future as traders monitor its ability to sustain above crucial price levels.
