Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Crypto Faces $1.6 Billion in Liquidations: Is This Deleveraging Essential for Market Stability?

Crypto Faces $1.6 Billion in Liquidations: Is This Deleveraging Essential for Market Stability?

Bitget-RWA2025/09/27 02:34
By:Coin World

- In late September 2025, crypto markets saw $1.6B in leveraged positions liquidated, with Bitcoin and Ethereum leading losses. - Overleveraged long bets, macroeconomic pressures, and weak ETF inflows triggered a 407,000-position collapse, 94% longs liquidated. - Analysts called it a "healthy correction," emphasizing Bitcoin’s need to hold $105,000 support amid ongoing macroeconomic risks.

Crypto Faces $1.6 Billion in Liquidations: Is This Deleveraging Essential for Market Stability? image 0

References: [1] title1 (url1) [2] title2 (url2) [3] title3 (url3) [4] title4 (url4) [5] title5 (url5) [6] title6 (url6) [7] title7 (url7) [8] title8 (url8) [9] title9 (url9) [10] title10 (url10) [11] title11 (url11) [12] title12 (url12)

According to data from Coinglass and Bitget, the cryptocurrency sector saw an unprecedented liquidation in late September 2025, with leveraged positions worth more than $1.6 billion erased in just one day.

(BTC) and (ETH) were hit hardest, suffering liquidations of $276 million and $483 million, respectively. This downturn was set off by a mix of excessive leverage, challenging macroeconomic conditions, and shallow liquidity, all of which intensified the pressure on a market already weakened by falling ETF inflows and a strengthening U.S. dollar.

Bitcoin’s price dropped to $108,600, marking its lowest point in nearly a month, while Ethereum slid 8.5% to near $3,800. The steep sell-off led to the forced closure of 407,000 leveraged trades, with 94% of those being long positions. Technical signals pointed to a bearish trend: Bitcoin’s RSI fell to 42.23, approaching oversold levels, and Ethereum’s RSI reached 38.76. Blockchain data showed a spike in short liquidations, hinting at possible short squeezes as traders rushed to exit risky positions.

This wave of liquidations was driven by several factors. First, high leverage in derivatives markets magnified price volatility, with open interest peaking at $1.04 trillion. Second, macroeconomic uncertainty—such as unclear U.S. Federal Reserve policy and rising interest rates—fueled a risk-averse mood. Third, institutional demand for crypto ETFs waned, as shown by an 87% decrease in inflows compared to the 30-day average, removing a key support for Bitcoin. The U.S. dollar’s rally (DXY index at 108.7) further reduced demand for alternative assets, worsening the sell-off.

Alternative cryptocurrencies were even more severely affected, with

(SOL) and (DOGE) tumbling by 21% and 21.1%, respectively. The total crypto market capitalization shrank by $150 billion to $3.70 trillion, reflecting a broader move toward safer assets. Institutional participation also fell, as corporate buyers cut their Bitcoin acquisitions by 76% compared to the previous month. This was a sharp reversal from the buying frenzy earlier in 2025 that had propelled both and to all-time highs.

Experts described the event as a necessary reduction in leverage. "This correction is healthy, as it flushes out excessive risk and helps stabilize the market," commented Linh Tran from XS.com. Arthur Azizov of B2 Ventures observed that Bitcoin’s drop below $111,000 indicated an "overheated" market entering a cooling phase. The Crypto Fear and Greed Index plunged to 12, its lowest reading since the March 2025 downturn, signaling extreme pessimism among investors.

Looking forward, the market stands at a pivotal point. Bitcoin needs to maintain support at key levels, such as $105,000 (the 200-day moving average), to prevent further losses. For Ethereum, the 50-day EMA at $4,100 is another important benchmark. Although historical trends suggest October might bring a rebound, short-term risks remain high due to ongoing macroeconomic instability and regulatory ambiguity. Traders are encouraged to take a cautious approach, using less leverage and diversifying their holdings as the market navigates this period of volatility.

This liquidation episode highlights the significant dangers of leveraged trading in crypto, where rapid margin calls can lead to cascading sell-offs. As both institutional and retail investors reconsider their positions, recovery will depend on renewed buying interest, clearer regulations, and the ability of major cryptocurrencies to find stability. For now, attention is focused on whether Bitcoin can reclaim the $111,000 mark—a level that could shape the next chapter for this unpredictable market.

References: [1] title1 (url1) [2] title2 (url2) [3] title3 (url3) [4] title4 (url4) [5] title5 (url5) [6] title6 (url6) [7] title7 (url7) [8] title8 (url8) [9] title9 (url9) [10] title10 (url10) [11] title11 (url11) [12] title12 (url12)

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Chainlink Triangle Approaches Its Peak: Can Bulls Push Past the $100 Mark?

- Chainlink (LINK) trades near $21.89 at its triangle pattern apex, with analysts projecting $35–$40 if resistance breaks. - Technical indicators show bullish momentum (RSI rebound, MACD rise) and $15.8B market cap amid stable $23.35 price. - Key support at $22–$23 and resistance at $27.88 could trigger a $28+ rally, with long-term targets up to $100. - Institutional inflows and on-chain accumulation suggest strategic positioning ahead of potential multi-year breakout.

Bitget-RWA2025/09/27 03:56
Chainlink Triangle Approaches Its Peak: Can Bulls Push Past the $100 Mark?

Cardano’s Steady Growth Compared to Ethereum’s Institutional Buzz: The 2025 Investment Discussion

- Cardano (ADA) and Ethereum (ETH) face 2025 investment debates, with ADA's quiet development contrasting ETH's institutional hype and ETF-driven growth. - Ethereum whales show mixed activity: $8.97M profit withdrawals vs. BitMine's $1B ETH purchase boosting institutional confidence and tightening supply. - ETH price volatility persists amid September "curse" speculation, while ADA's long-term scalability vs. ETH's layer-1 dominance remains a key investment consideration.

Bitget-RWA2025/09/27 03:42
Cardano’s Steady Growth Compared to Ethereum’s Institutional Buzz: The 2025 Investment Discussion

Ethereum Whale Nets $2.43M in Profits, Retains $12.16M in Unclaimed Wagers

- Ethereum whale realizes $2.43M profit by depositing 1,000 ETH at $1,582, retaining $12.16M in unrealized gains. - Whale's strategy leverages ETF-driven optimism and regulatory clarity, accumulating ETH pre-SEC approval with $6M+ unrealized gains. - Institutional adoption intensifies as BitMine and unidentified whales acquire $882M in ETH via OTC channels, signaling long-term confidence. - Market analysis highlights dual Ethereum appeal: short-term liquidity from realized gains vs. long-term value retenti

Bitget-RWA2025/09/27 03:42
Ethereum Whale Nets $2.43M in Profits, Retains $12.16M in Unclaimed Wagers

Chainlink's $16 Level Under Scrutiny, Potential Pathway to $100 Target

- Technical analysts highlight Chainlink's (LINK) symmetrical triangle pattern, with $16 as critical support and a $100 price target if the breakout confirms. - Institutional adoption, including Grayscale's ETF filing and Caliber's treasury allocation, strengthens bullish sentiment for the oracle network. - Whale accumulation of 2.08M LINK ($49.5M) and Fibonacci retracement levels reinforce the case for a sustained upward move. - Risks persist with bearish momentum indicators (MACD, RSI) and potential decl

Bitget-RWA2025/09/27 03:28
Chainlink's $16 Level Under Scrutiny, Potential Pathway to $100 Target