Crypto Liquidations Hit $1.8B in a Day: Market Flush or More Downside Ahead?

$1.8B Wiped Out in Largest Long Liquidation of 2025

Overleveraged traders were caught off guard this week as the crypto market faced one of its sharpest corrections of the year. In the last 24 hours alone, more than $1.8 billion worth of positions were liquidated, according to CoinGlass.

• 370,000+ traders were liquidated

• Ethereum (ETH) led with over $500M in losses

• Bitcoin (BTC) longs saw more than $200M liquidated

The sell-off coincided with a steep decline in total market capitalization, which fell by $150 billion to a two-week low of $3.95 trillion. On Coinbase, Bitcoin briefly dropped below $112,000, while Ethereum slipped under $4,150—its largest pullback since mid-August.

Analysts: Same Story, Different Cycle

Veteran investors argue that liquidation-driven corrections are nothing new. Raoul Pal, founder of Real Vision, described the pattern:

“The crypto market gears up for a big breakout, gets over-levered, fails on the first attempt, and everyone gets liquidated. Only then does the real breakout occur—once everyone is sidelined.”

This week’s shakeout was the largest long liquidation of 2025, following similar washouts in February, April, and August, when excessive leverage left traders vulnerable to sudden downside moves.

Long ETH and BTC positions saw the lion’s share of liquidations. Source: CoinGlass

Related: South Korea Reports Record 36,684 Suspicious Crypto Transactions in 2025

Why Altcoins Took the Hardest Hit

While Bitcoin longs were hit, altcoin traders bore the brunt of the wipeout. Researcher Bull Theory highlighted the imbalance:

• ETH liquidations exceeded $500M, more than double Bitcoin’s losses

• Excessive leverage across altcoins amplified cascading sell-offs

“When altcoin leverage gets this extreme, the market doesn’t ignore it,” Bull Theory explained. “A single sharp move down triggers cascading liquidations that flush weak hands.”

Still, CoinW chief strategy officer Nassar Achkar suggested the flush was more of a short-term reset:

“This may present a near-term adjustment rather than a shift in the long-term bull run. The easing path still supports risk assets like Bitcoin.”

Largest long position wipeout of 2025. Source: CoinGlass

Could Bitcoin Dip Toward $100K?

Some analysts believe the correction may not be over. IG Markets analyst Tony Sycamore pointed to technical indicators showing Bitcoin remains overbought after rallying to $125K in August:

• BTC may test the $105K–$100K support zone

• The 200-day moving average near $103,700 could act as a key level

• A flush to that range would “set up a strong buying opportunity heading into year-end”

Despite the turbulence, Bitcoin’s current pullback is relatively shallow compared to past bull cycles:

• Down 9.5% from its all-time high

• Only a 13% correction so far in September

• Historically, September is weak for BTC (8 red months out of the last 13)

• But “Uptober” often brings stronger gains

• Protect Your Crypto

Conclusion: Final Flush or Just a Reset?

The $1.8 billion liquidation underscores how fragile markets can get when leverage builds up. While some view the drop as a healthy reset, others warn that a deeper correction to the $100K–$105K zone is possible before momentum resumes.

Whether this proves to be the final flush or just another shakeout in an ongoing bull cycle, long-term fundamentals remain intact—and opportunistic buyers may already be eyeing the dip.

Related: Bitcoin ETF Flows Surge $850M, BTC Stays Flat