Article Details

Crypto Liquidations Hit $1.8B in a Day: Final Flush or More to Come?

The crypto market just experienced one of its largest shakeouts of the year. Over $1.8 billion in leveraged positions were liquidated within 24 hours, raising the question: is this the final flush before the next leg up, or a sign of deeper pain ahead?

$1.8 Billion Wiped Out in 24 Hours

According to CoinGlass data, more than 370,000 traders were liquidated on Monday, marking the largest long liquidation event of 2025 so far. Bitcoin and Ethereum positions led the way, while leveraged altcoin bets were hit especially hard.

• Bitcoin (BTC) dropped below $112,000 on Coinbase.
• Ethereum (ETH) slipped under $4,150, its sharpest correction since mid-August.
• Overall crypto market cap fell by $150 billion, touching a two-week low of $3.95 trillion.

Despite the wipeout, BTC remains up nearly 4% for September, historically one of crypto’s toughest months.

Overleveraged Traders: Same Old Story

Veteran investor Raoul Pal noted this isn’t new:

“The crypto market is focused on a big breakout, gets levered long ahead of it, it fails at first attempt, so everyone gets liquidated… only then does the actual breakout occur.”

Liquidation cycles like these have happened repeatedly — February, April, and August all saw billions in leveraged positions flushed out in hours.

Altcoin Leverage Took the Brunt

Analyst Bull Theory pointed to excessive leverage in altcoins:

“When altcoin leverage gets this extreme, the market doesn’t ignore it. One sharp move down triggers cascading liquidations. That’s how you flush out weak hands and reset the board.”

Ethereum longs alone accounted for $500 million in liquidations — more than double Bitcoin’s.

Temporary Shakeout or Bearish Signal?

Some analysts argue this event is more of a short-term reset than a structural breakdown.

• Nassar Achkar (CoinW) said: “The flushout may present a near-term adjustment rather than a shift in the long-term structural bull run.”
• Tony Sycamore (IG Markets) believes Bitcoin could dip back into its $105k–$100k support zone, with the 200-day moving average at $103,700 acting as a key level.

A pullback to that range, he argues, could “flush out weaker hands and set up a strong year-end rally.”

What History Tells Us

Historically, September tends to bring corrections — BTC has closed red in 8 of the past 13 Septembers. But October, dubbed “Uptober”, often delivers strong rebounds.

With Bitcoin only down 9.5% from its all-time high and still holding above $110,000, this liquidation may be less of a crash and more of a necessary reset in an ongoing bull cycle.

✅ Key Takeaway: $1.8B in crypto liquidations shows how dangerous overleveraged trading can be. While a dip toward the $100k support zone is possible, many analysts still see a bullish setup heading into Q4.

Crypto Liquidations Hit $1.8B in a Day: Final Flush or More to Come? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.