Crypto’s New Normal: Another $1 Billion Liquidation Day Shakes the Market
The crypto market saw over $1 billion in liquidations in 24 hours, continuing a trend of massive, frequent wipeouts driven by high leverage.Summary
The cryptocurrency market experienced another day with over $1 billion in liquidations, affecting more than 190,000 traders, establishing billion-dollar wipeouts as a regular occurrence in late 2025. Data showed that over 70% of the liquidated positions were longs ($726.5 million). This event followed a 3.7% market decline, which saw Bitcoin briefly drop below $90,000 and Ethereum dip below $3,000. Analysts note that this volatility persists despite a lack of major bearish fundamental news, such as President Trump's recent positive comments on crypto. The acceleration in liquidations is attributed to a structurally fragile market where institutional outflows have thinned liquidity, allowing high leverage (20x–100x) to create a feedback loop: forced selling triggers margin calls, leading to further liquidations and price drops. Unless leverage decreases or spot liquidity stabilizes, the market is expected to remain hypersensitive to outsized intraday swings.
(Source：BeInCrypto)