Bitcoin News Today: BTC's $113K Fall Triggers $1.7B Liquidation Tsunami in Crypto Markets

Over $1.7 billion in cryptocurrency liquidations occurred in a single 24-hour period in late September 2025, marking the largest such event of the year^[1]. The data, sourced from on-chain analytics platforms, revealed that long positions accounted for $1.62 billion of the total, while short liquidations totaled $80 million. This imbalance reflected a bearish sentiment in the market, with leveraged long traders facing significant losses as Bitcoin (BTC) dropped below $113,000^[2]. The liquidation event followed a broader correction in crypto markets, driven by a combination of macroeconomic uncertainty and geopolitical developments.

The collapse of leveraged long positions was exacerbated by the Federal Reserve's ongoing inflationary concerns and the potential for further rate hikes in 2025^[3]. Analysts noted that the $113,000–$114,000 price range had become a critical cluster of liquidation levels, as highlighted by heatmaps showing concentrated leverage in that zone^[4]. This price action triggered cascading sell-offs, with over $100 million in long liquidations reported as BTC fell below $115,000. The volatility also spilled into altcoins, with Ethereum (ETH) and Solana (SOL) experiencing sharp declines alongside Bitcoin.

Geopolitical tensions, including U.S. trade tariff announcements in April 2025, contributed to the market's fragility^[5]. These events, coupled with a hawkish Federal Reserve stance and corporate earnings warnings, created a perfect storm for crypto markets. By mid-2025, Bitcoin had fallen below key psychological levels of $90,000 and $75,000, triggering further bearish momentum. However, the market demonstrated resilience as BTC stabilized and began a recovery phase, supported by institutional buying and renewed bullish sentiment.

Technical analysis of Bitcoin's price action in 2025 revealed critical support and resistance levels shaping trader behavior. The $113,000 level, for instance, acted as a pivotal benchmark, with traders closely monitoring its ability to hold as a floor^[6]. Breakouts above this level were seen as potential catalysts for a rally toward $120,000 and beyond. Meanwhile, indicators like the Moving Average Convergence Divergence (MACD) and Bollinger Bands highlighted shifting momentum, with the latter narrowing to suggest a period of consolidation before a potential breakout.

Market participants increasingly relied on liquidation heatmaps to identify high-risk zones and optimize trading strategies^[7]. These tools, which visualize areas of concentrated leverage, helped traders anticipate forced liquidations and adjust stop-loss orders accordingly. For example, the $113,000–$114,000 range was flagged as a high-liquidation zone, prompting traders to avoid over-leveraged positions in that area. Analysts also emphasized the importance of combining heatmaps with funding rates and long/short ratios to form a more robust trading framework.

Despite the volatility, the long-term outlook for Bitcoin remained cautiously optimistic. Institutional adoption, including purchases by companies like MicroStrategy and Tesla, continued to underpin demand^[8]. U.S. spot Bitcoin ETFs surpassed $50 billion in cumulative inflows, reflecting growing institutional confidence. However, risks persisted, particularly for high-leverage tokens like Hamster Coin and LUNC, which experienced frequent liquidation spikes. Traders were advised to reduce exposure to such assets and adopt disciplined risk management practices.

The cryptocurrency market's ability to withstand large-scale liquidations underscored its evolving maturity. While volatility remained a defining feature, the sector demonstrated resilience in 2025, with Bitcoin leading the recovery from key support levels. As the year progressed, participants focused on macroeconomic indicators, geopolitical developments, and technical signals to navigate the dynamic landscape. The interplay between these factors will likely shape the next phase of Bitcoin's price trajectory, with liquidation data serving as a critical barometer of market sentiment.