Bitcoin News Today: Leverage and Macro Pressures Drive $1.6B Crypto Liquidation Wave

Bitcoin and Ethereum liquidations surged to over $1.6 billion in late September and early October 2025, according to data from Coinglass and other analytics platforms, marking one of the largest single-week liquidation events in the year. The bulk of the losses-$1.1 billion-stemmed from leveraged long positions, with Bitcoin and Ethereum accounting for nearly 60% of total liquidations The Crypto Times^[1]. Coinglass reported that the sharp price corrections followed Bitcoin's brief surge past $125,000, triggering cascading sell-offs as traders faced margin calls. Ethereum, meanwhile, saw $489 million in long liquidations, outpacing Bitcoin's $114 million in long losses during the same period Coindesk^[4].

The liquidation wave was concentrated on major exchanges like Binance, OKX, and Bybit, where leveraged positions collapsed due to thin liquidity and overextended leverage. Coinglass noted that Ethereum's liquidations were particularly severe, with $235 million in long positions wiped out in a single session as the token fell below $4,100 Cryptorank.io^[5]. Analysts attributed the sell-off to a combination of profit-taking after a 10% rally, macroeconomic pressures (including a stronger U.S. dollar), and gold's rebound attracting capital rotation Coindesk^[4].

Technical analysis highlighted Bitcoin's consolidation around $121,000 after testing key support levels, with immediate resistance at $123,700 and critical support at $110,000. A sustained break below $110,000 could trigger deeper selling, but the broader macro uptrend remains intact if Bitcoin holds above this threshold The Crypto Times^[1]. Meanwhile, Ethereum's breakdown below $4,100 exposed weak institutional positioning, with analysts warning that further liquidations could follow if the asset fails to reclaim $4,200 Cryptorank.io^[5].

Institutional activity added complexity to the market dynamics. While corporate holders like Bitmine and Metaplanet continued accumulating Bitcoin and Ethereum, leveraged ETF flows turned negative, with VolatilityShares recording its largest outflow in over a month Coinglass^[2]. The broader derivatives market also showed defensive positioning, with CME futures trading below spot prices-a sign of stress not seen since June Coinglass^[2].

The liquidation surge underscored the risks of excessive leverage, particularly in altcoins. Altcoin liquidations surpassed Bitcoin's in several instances, with Ethereum and Solana experiencing the largest outflows. K33 research noted that 75% of the top 100 coins fell in value during the correction, with Ethereum's market share stabilizing at 18.7% despite the turmoil The Crypto Times^[1].

Market observers remain divided on the implications. While some view the liquidations as a healthy correction, others warn of prolonged underperformance. Historical data from K33 shows that the average 30-day return following top 5% annual liquidation events is just 0.78%, with a median of –1.1% Coinglass^[2]. However, a quarter of prior large liquidation events coincided with local bottoms, suggesting potential for recovery if institutional demand persists Coinglass^[2].

The Coinglass liquidation heatmap revealed a shift in leverage distribution, with Bitcoin's share of perpetual open interest declining from 47% in 2024 to 40% in 2025. This reflects growing interest in Ethereum and Solana, driven by treasury company launches and anticipation of mid-October ETF debuts for altcoins Coinglass^[2].

As the market digests these developments, the focus remains on the U.S. Federal Reserve's October FOMC meeting and potential rate cuts, which could influence risk appetite. For now, traders are advised to manage leverage cautiously, with analysts emphasizing that volatility is likely to persist in the near term .