What to Know:
- $1.7B liquidated in 24 hours, wiping out 404K traders, mostly longs.
- ETH ($483M) and BTC ($276M) saw the biggest liquidation hits.
- Market fears: leverage unwinds, global uncertainty, and selling pressure.
Today was one of the most turbulent days in the crypto market so far in 2025. According to Coinglass, more than 404,000 traders lost money in the last 24 hours, with losses adding up to a shocking $1.7 billion. The vast majority of the pain was felt by long traders, who lost $1.62 billion, while shorts accounted for around $85 million. To put it simply: in just one day, hundreds of thousands of people betting on prices going up got wiped out.
A Sudden Downturn
The sell-off was sharp and fast. In fact, some reports said that $1 billion worth of crypto longs were liquidated in just 30 minutes as prices suddenly collapsed. Over the last 8 hours, Bitcoin fell back below $111,300, while Ethereum and Solana each dropped more than 7% at press time.
Ethereum had the most liquidations, losing $483 million in just 12 hours. Bitcoin came next with $276 million in liquidations. The rest of the market lost almost $80 billion in value, and other big altcoins like XRP, ADA, and SOL also lost a lot of money.
Here’s Why This Happened
There isn’t just one reason. There were a lot of things that came together to cause this crash. A lot of traders had been buying long positions, hoping that Bitcoin and other cryptocurrencies would keep going up through “Uptober,” a month when prices usually go up. There was too much leverage in the system, so a small drop set off a chain of forced liquidations.
Traders are worried about the state of the world markets, inflation data, and what the U.S. Federal Reserve thinks about interest rates. When feelings change, risk assets like crypto are often the first to go down. After months of price increases, some big holders may have decided to sell, which put more pressure on the market to sell. As money left smaller coins, it set off a chain reaction that scared people in the market.
Crypto markets often go to extremes, and once liquidations start, they can turn into something much bigger. That seems to be what happened here.
The Human Cost
For traders, liquidations can be devastating. A liquidation means your trading position is forcefully closed by the exchange because your collateral is no longer enough to cover the loss. In this case, 404,386 traders lost their positions, and many of them probably lost all of their margin balances.
It reminds me of how dangerous leveraged trading can be. While leverage can multiply gains, it can also erase an account in seconds during sudden price swings.
Analysts Weigh In
Some analysts are now questioning the narrative of “Uptober,” a month when Bitcoin has historically rallied. This time, the market seems to be proving the opposite. As one report from Cointelegraph noted, the dip has put doubts on whether this October can live up to past hype.
Some people say that the sell-off, even though it hurts, could actually make the market healthier in the long run. The market may stabilize and get ready for a more sustainable move in the coming months by getting rid of too much leverage. Still, the fear is real right now. The Crypto Fear & Greed Index has dropped toward “neutral,” reflecting trader uncertainty after weeks of optimism.
What’s Next?
The most important thing to ask is if Bitcoin can stay above $111,000. If it does, things might get a little more stable. If not, analysts say that things could get worse, which could cause ETH, SOL, and other major coins to drop even more.
The market is still on edge for now. Traders are being reminded once again that crypto can be both very rewarding and very harsh, with more than $1 billion in liquidations in just one day.
Also Read: $410M Monthly HYPE Unlocks Begin Nov 29, Will Hyperliquid’s Rally Survive?
