370,000 Traders Wiped Out: Inside the Biggest $1.8B Liquidation of 2025

• $1.8B in leveraged crypto positions were liquidated in 24 hours.
  
• Ethereum liquidations surpassed $500M, outpacing Bitcoin’s.
  
• Analysts see the pullback as a reset, not a fundamental downturn.

Stay ahead with real-time updates and insights—Join our Telegram channel!

The crypto market was rattled on Monday as nearly $2 billion in leveraged positions were wiped out, marking one of the largest Liquidation events of 2025. According to CoinGlass, more than 370,000 traders were liquidated in 24 hours, with Bitcoin and Ethereum longs taking the heaviest losses.

Bitcoin and Ether Take the Biggest Hit

Bitcoin briefly fell below $112,000, while Ethereum slipped under $4,150 — its steepest pullback since mid-August. Altcoins also saw steep declines, with total market capitalization shrinking by over $150 billion to $3.95 trillion. Analysts, however, caution against reading the dip as a fundamental shift. They note that similar flush-outs have occurred multiple times this year, often clearing excess leverage before the market regains momentum.

Leverage Imbalance Triggers Cascade

Researcher “Bull Theory” pointed to outsized altcoin leverage as a major driver of the collapse, with Ether liquidations surpassing $500 million — more than double Bitcoin’s. This imbalance created conditions where even a small price drop sparked a cascade of forced liquidations. Real Vision founder Raoul Pal echoed the sentiment, saying overleveraged longs often get washed out before real breakouts can occur.

Also Read: $1.7B Liquidated! Bitcoin’s $112K Dive Marks 2025’s Biggest Shakeout

Opportunity in the Pullback?

Some analysts view the sell-off as a healthy correction. IG’s Tony Sycamore suggested Bitcoin could dip into the $105,000–$100,000 support zone, aligning with its 200-day moving average. Such a move, he argued, would reset overbought conditions and potentially set the stage for a stronger year-end rally. Despite September’s reputation for weakness, Bitcoin is still up about 4% this month — and history shows October often delivers stronger gains.

The $1.8 billion liquidation event underscores the risks of excessive leverage in crypto trading, but market watchers see it less as the start of a downturn and more as a temporary reset. With long-term fundamentals intact, the correction could offer patient investors fresh opportunities ahead of the year’s final quarter.

Stay ahead with real-time updates and insights—Join our Telegram channel!

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Andrew Chen

I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.