$1.5B Liquidation Hits Crypto Markets as Ether and Dogecoin Lead Losses
22 September 2025
Over 400,000 traders saw positions liquidated on Monday as leveraged long bets in Ether, Dogecoin, XRP, and other major cryptocurrencies triggered the largest crypto sell-off in months.
Market Overview
- Ether (ETH) plunged as much as 9% to $4,075, with nearly $500 million in leveraged longs liquidated. ETH closed the 24-hour period down 6%.
- Bitcoin (BTC) fell nearly 3% to $111,998 before partially rebounding.
- Dogecoin (DOGE) led losses among major tokens, sliding over 10%, while Solana (SOL), Cardano (ADA), BNB (BNB), and Tron (TRX) each fell at least 5%.
Liquidation Insights
According to Coinglass, more than 407,000 traders were liquidated in a single day—the highest in recent months. Forced liquidations occur when leveraged positions exceed margin thresholds, often sparking cascade selling and amplified volatility.
Large long liquidations can indicate panic selling, while short liquidations may precede squeezes. When analyzed alongside open interest and funding rates, liquidation data helps traders identify overcrowded trades and potential reversal points.
Macro Backdrop
The sell-off comes amid ongoing uncertainty despite the Federal Reserve’s recent interest-rate cut.
“The market’s direction will depend on upcoming economic data and Fed guidance,” said Nassar Achkar, chief strategy officer at CoinW. “Bitcoin’s dominance is likely to remain, potentially limiting upside for Ethereum and the broader DeFi sector despite their higher yields.”
Investors are also watching U.S. PMI data and jobless claims this week. Powell’s Tuesday speech is expected to influence risk appetite—dovish signals could support altcoins, while cautious remarks may reinforce defensive positioning in derivatives markets.
