Was This Week the Biggest Crypto Liquidation Ever?

The cryptocurrency market has just gone through one of its most turbulent trading days of 2025, with over $1.8 billion in leveraged positions liquidated in a single 24-hour period. This massive wipeout impacted more than 370,000 traders worldwide, with Bitcoin and Ethereum longs taking the biggest hit. 

Market capitalization dropped by $150 billion, sending Bitcoin below $112,000 and Ethereum below $4,150, their sharpest declines since August. 

Such large-scale liquidations have become a recurring feature of the crypto landscape, shaking out overleveraged traders and resetting market conditions. Understanding whether this was the final flush before a rebound or the start of a deeper correction is crucial for anyone watching Bitcoin’s next move.

Understanding the $1.8 Billion Crypto Liquidation

This liquidation event sent shockwaves across the entire digital asset market. Data from CoinGlass shows $1.8 billion in leveraged trades were closed within 24 hours, cutting global crypto market capitalisation by $150 billion. Bitcoin fell below $112,000 while Ethereum dipped under $4,150 — their steepest declines since August.

Read Also: Massive Liquidations Shake the Crypto Market

The root cause appears to be excessive leverage ahead of an anticipated breakout. When prices turned lower, a chain reaction of forced liquidations occurred, rapidly accelerating the market drop. Analysts, including Real Vision’s Raoul Pal, explain that such events are part of normal crypto cycles: traders build leverage ahead of a move, get stopped out when the move fails, and watch as the market later recovers.

Register with Bitrue.com to monitor liquidation data and set alerts for Bitcoin and Ethereum price movements so you can be ready when volatility strikes again.

Read Also: $5.01B Liquidated as High Leverage and Volatility Rock Crypto Markets

How This Compares to Previous Crypto Sell-Offs

While dramatic, this was not the first time 2025 has seen large-scale liquidations. Similar events occurred in February, April, and August, each removing billions from the market in a short period. 

This most recent liquidation stands out because Ethereum long positions were hit harder than Bitcoin, with more than $500 million cleared, double that of Bitcoin’s losses.

Market researchers attribute this to an excessive imbalance in altcoin leverage compared to Bitcoin. When too many traders are overexposed, a sharp downward move triggers cascading liquidations that reset market conditions. These resets often prepare the market for healthier price action in the weeks that follow.

Largest long position wipeout of 2025

Sign up at Bitrue.com to track real-time altcoin leverage metrics and manage risk before another sell-off occurs.

What Traders Should Watch Next

The critical question now is whether this was the final flush before a rebound or if further downside lies ahead. 

Technical analysts suggest Bitcoin could retest the $105,000–$100,000 support zone, which includes the 200-day moving average near $103,700. Reaching this level could trigger additional liquidations but may also present buying opportunities for traders anticipating a year-end rally.

Read Also: Bitcoin Falls to $112K Amid $1.7B in Long Liquidations

September is historically one of Bitcoin’s weakest months, with red closes in eight of the past thirteen years, but positive trends often emerge in October. This means traders should remain alert for both downside risk and potential reversals. Even after this correction, Bitcoin remains up roughly 4% in September, suggesting long-term momentum may still be intact.

Join Bitrue.com to set automated alerts for Bitcoin’s key support and resistance levels and stay ahead of sudden market moves.

Conclusion

This $1.8 billion liquidation may have been one of the largest of 2025, but it is not unprecedented. Crypto markets frequently undergo sharp corrections that clear overleveraged traders from the system. Whether this marks the end of the current downturn or just another stage in a longer correction is still uncertain.

The lesson for traders is clear: manage leverage carefully, monitor liquidation data, and stay prepared for volatility. Risk management is essential in markets this fast-moving, and tracking real-time data can make the difference between opportunity and loss.

FAQ

What caused the $1.8B liquidation?

An imbalance in leveraged positions, especially in Ethereum and altcoins, combined with a sharp price move triggered cascading liquidations across the market.

Is this the biggest liquidation ever?

It is among the largest of 2025 but not the biggest in crypto history. Similar events have occurred in previous bull cycles.

Will Bitcoin drop further?

Some analysts expect Bitcoin to test $103,000 support, though no prediction is certain. Watching key levels can help traders prepare.

Are altcoins more vulnerable during liquidations?

Yes, altcoins are generally more volatile and often face higher liquidation rates than Bitcoin during sharp market moves.

How can I protect my trades?

Use stop-loss orders, avoid excessive leverage, and monitor real-time market data to react quickly to price changes.