The crypto market faced one of its largest shakeouts of the year, with over $1.8 billion liquidated in just 24 hours. Bitcoin briefly fell below $112,000, Ethereum slid under $4,150, and altcoins across the board saw heavy losses.
$1.8 Billion in Crypto Liquidations
According to CoinGlass, more than 370,000 traders were liquidated as the market capitalization dropped by over $150 billion, hitting a two-week low of $3.95 trillion. The bulk of these positions were concentrated in Bitcoin and Ethereum, while smaller altcoins also faced severe sell-offs.
The sharp correction followed weeks of strong momentum, leaving many overleveraged traders exposed. Despite the setback, some analysts argue this flush-out is more technical than fundamental.
Same Story for Overleveraged Traders
Raoul Pal, founder of Real Vision, noted that these liquidation events are a recurring pattern in crypto. “The market gears up for a breakout, traders go long with leverage, the first attempt fails, and liquidations wipe out positions. Only then does the real breakout happen.”
CoinGlass confirmed this was the largest long liquidation event of 2025, echoing similar crashes earlier this year in February, April, and August.
Altcoin Leverage Under Fire
Market researcher “Bull Theory” pointed to excessive altcoin leverage as the key driver. Ethereum long positions saw over $500 million in liquidations—more than double Bitcoin’s. “When altcoin leverage gets this extreme, the market doesn’t ignore it,” the researcher said. “One sharp move triggers cascading liquidations, resetting the board.”
Nassar Achkar, chief strategy officer at CoinW, framed the crash as a short-term adjustment. He argued that the long-term structural bull run remains intact, with easing policies supporting risk-on assets like Bitcoin.
Bitcoin Price Outlook: $103K Support Zone?
Tony Sycamore, market analyst at IG, said Bitcoin could dip further before regaining strength. He pointed to the $105K–$100K support zone, with the 200-day moving average sitting near $103,700. “A correction into this area would flush out weaker hands and set up a strong buying opportunity heading into year-end.”
Bitcoin’s correction stands at just 9.5% from its all-time high despite the sharp drop, far shallower than past bull market pullbacks. Historically, September has been a weak month for BTC, but traders are eyeing the potential for an “Uptober” rally.
What Comes Next?
While the crypto market has seen nearly $2 billion wiped out, analysts suggest the flush may create a healthier setup for the next leg higher. With Bitcoin still up around 4% this September and Ethereum showing resilience, the correction may prove to be a temporary reset rather than the end of the bull cycle.
