- Coinglass data recorded $1.65B in liquidated longs within a day as Bitcoin is under $113K.
- ETH suffered $275M in liquidations, while BTC saw $263M in losses across derivatives.
- Analysts suggest the flush erased weak leverage and may prepare a foundation for Q4.
The cryptocurrency market witnessed its largest long liquidation event of the year as $1.65 billion in leveraged bets were erased within 24 hours. According to Coinglass, a total of 357,152 traders lost positions in the wipeout. Longs accounted for $1.29 billion, while shorts added $157.11 million, amplifying the volatility across multiple tokens.
Ethereum absorbed the biggest hit, with liquidations reaching $275.66 million, followed by Bitcoin at $263.27 million. Solana and XRP also faced steep losses of $92.75 million and $64.23 million, respectively. Dogecoin and PUMPBTC were among the smaller tokens that posted losses. The largest single liquidation order occurred on OKX’s BTC-USDT swap, valued at $12.74 million.
Bitcoin’s price fell below $113,000, dropping to an intraday low near $111,500 before edging back to $112,748 by session end. CoinMarketCap data shows market capitalization sliding to $2.24 trillion, while daily trading volume surged by 113% to $67.73 billion, reflecting forced selling.
Analysts Point to Excessive Leverage
Coinglass confirmed this was the largest long-side liquidation since similar events in late February, early April, and early August, when spot markets shed hundreds of billions in hours. Researcher “Bull Theory” attributed the crash to an “excessive imbalance” of leverage in altcoins compared to Bitcoin, noting that Ether’s liquidations topped $500 million, more than double those for Bitcoin longs.
“When altcoin leverage gets this extreme, the market doesn’t ignore it,” Bull Theory said. “One sharp move down triggers cascading liquidations. That’s how you flush out weak hands and reset the board.”
Real Vision founder Raoul Pal added perspective, explaining, “The crypto market is focused on a big breakout, gets leveraged long ahead of it, and fails at the first attempt, so everyone gets liquidated… only then does the actual breakout occur, leaving everyone sidelined.”
Nassar Achkar, chief strategy officer at CoinW exchange, said the liquidation “may present a near-term adjustment rather than a shift in the long-term structural bull run, as the path of future easing remains supportive for risk-on assets like Bitcoin.”
Related: Bitcoin Faces $280M Long Liquidations Near $112K Support
Market Outlook and Pivotal Question
Market analysts observed that long positions appeared “overcrowded” in the lead-up to the liquidation wave. According to market analyst Linh Tran, it would reduce the risk of a sharp long squeeze and provide a stronger foundation for a sustainable trend. Tran further noted that Bitcoin looked to be entering a “correction phase,” adding that “this pause is seen as necessary to absorb profit-taking pressure, reduce short-term leverage, and lay the groundwork for a more stable price base.”
Options markets reflected growing downside concerns as traders leaned toward protective puts, while implied volatility stayed steady. This combination pointed to cautious sentiment but not outright panic. Analysts noted that fourth-quarter optimism remains intact, with selective tokens still showing resilience despite the broader downturn.
The pressing matter now is whether Bitcoin can hold above the $111,000 support level after breaking below $113,000. With the breach, vulnerable market sentiment was revealed following billions in liquidations, making traders wary of further downside. Given that excessive leverage has been purged and bearish sentiment elevated, the big question now arises: Was this the terminal shakeout before the next leg up or the genesis of further declines?
