$1.5B Liquidation Wipes Out Crypto Traders as Ether and Dogecoin Lead Losses
22 September 2025
More than 400,000 traders were liquidated on Monday as leveraged long positions in Ether, Dogecoin, XRP, and other major tokens sparked the largest crypto sell-off in months.
According to Coinglass, over $1.5 billion in bullish positions were forcibly closed, with smaller altcoins bearing the brunt of the losses.
Market Highlights
- Ether (ETH) fell as much as 9% to $4,075, with nearly $500 million in leveraged long positions liquidated. ETH recorded a 6% decline over 24 hours.
- Bitcoin (BTC) dropped almost 3% to $111,998 before rebounding slightly.
- Dogecoin (DOGE) led losses among major cryptocurrencies, plunging over 10%, while Solana (SOL), Cardano (ADA), BNB (BNB), and Tron (TRX) all fell at least 5% in the past 24 hours.
Liquidation Trends and Market Sentiment
Over 407,000 traders were liquidated within a single day—the highest in recent months. Forced liquidations occur when leveraged positions surpass margin thresholds, often triggering cascade selling and amplified volatility.
Liquidation data serves as a barometer for market sentiment. Large long liquidations may indicate panic bottoms, while short liquidations can precede price squeezes. When combined with metrics like open interest and funding rates, these trends help traders identify overcrowded positions and potential reversals.
Macro Backdrop
This wave of liquidations occurs amid ongoing macro uncertainty despite the Federal Reserve’s recent rate cut.
“The market’s trajectory will be shaped by upcoming economic data and Fed signals,” said Nassar Achkar, chief strategy officer at CoinW. “Bitcoin’s dominance is likely to persist, potentially limiting gains for Ethereum and the broader DeFi sector despite higher yields.”
Investors are closely watching U.S. PMI data and jobless claims later this week. Powell’s Tuesday speech is expected to guide risk appetite—a dovish tone could support altcoins recovering from sharp losses, whereas cautionary remarks may reinforce defensive positioning in derivatives markets.
