CMC News

#Crypto Market Suffers $1.8B #Liquidation Wave as $BTC Tests Support

Over 370,000 traders faced liquidations totaling $1.8 billion in one of 2025's largest market flush-outs. $ETH and $BTC positions dominated the liquidation data as crypto market capitalization dropped $150 billion to $3.95 trillion.

$BTC fell below $112,000 on major exchanges while Ethereum dropped under $4,150 in its most significant pullback since mid-August. The selloff marked the largest long position liquidation event of the year, according to CoinGlass data. Traditional markets remained near all-time highs with the S&P 500 gaining 0.5%.

Real Vision founder Raoul Pal attributed the flush-out to typical overleveraged positioning ahead of anticipated breakouts. He noted that failed breakout attempts often trigger cascading liquidations before actual rallies occur. The pattern leaves many traders sidelined during subsequent recovery phases.

Researcher Bull Theory blamed excessive altcoin leverage imbalances compared to $BTC positioning. $ETH liquidations exceeded $500 million, more than double $BTC's long position losses. The extreme #altcoin leverage creates vulnerability to sharp downside moves that trigger cascading liquidations.

IG market analyst Tony Sycamore suggested Bitcoin's recent performance reflected technical factors rather than fundamental weakness. He noted the need for time to correct stellar gains and work off overbought readings. A potential dip toward the $103,000-$105,000 support zone including the 200-day moving average could flush out weaker positions.