Bitcoin News Today: Massive Crypto Liquidations: Bearish Panic or Omen of Rebound?

Over 1.51 million traders globally were liquidated in the past 24 hours, with total liquidations exceeding $13.512 billion, according to aggregated data from multiple sources. Bitcoin (BTC) and Ethereum (ETH) were the most impacted assets, with BTC alone accounting for $2.46 billion in liquidations and ETH for $2.24 billion Coinpedia^[1]. The largest single liquidation event, a $87 million BTC/USDT trade on HTX, underscored the scale of forced exits Coinpedia^[1]. These figures align with broader market turbulence triggered by U.S. President Donald Trump's announcement of a 100% tariff on Chinese goods, which intensified bearish sentiment and prompted panic selling among leveraged positions Coinpedia^[1].

The liquidation surge reflects heightened leverage use in crypto derivatives markets. Over $1.7 billion in leveraged positions were liquidated on September 22, 2025, during a single-day market cap contraction of $151 billion FinancialContent^[2]. This event, exacerbated by low liquidity and the "Triple Witching" expiry of $17.5 billion in BTC and $5.5 billion in ETH options, highlighted the fragility of highly leveraged portfolios FinancialContent^[2]. Similarly, on October 7, 2025, a $3.93 billion Bitcoin transfer from dormant wallets-likely profit-taking by long-term holders-sparked $620 million in liquidations, with 74% of the losses attributed to long positions .

Market participants are increasingly scrutinizing leverage ratios and liquidity risks. On October 6, 2025, crypto derivatives liquidations totaled $405 million, with short positions accounting for $229.58 million and longs $176.10 million, indicating a short-to-long liquidation ratio of 1.30 . Analysts note that large-scale liquidations often act as contrarian indicators, with spikes in short liquidations suggesting potential rebounds, while long liquidations signal bearish exhaustion .

Regulatory and macroeconomic factors are compounding volatility. The U.S. Federal Reserve's cautious stance on rate cuts and global economic uncertainty have fueled a "risk-off" environment, exacerbating crypto market declines FinancialContent^[2]. Meanwhile, the approval of spot ETFs for altcoins in the U.S. remains a key catalyst for long-term bullish sentiment, though near-term volatility is expected to persist Coinpedia^[1].

Exchanges and market infrastructure face heightened scrutiny. The liquidation of $1.7 billion in leveraged positions in September 2025 triggered a 4% drop in BTC and a 6-10% plunge in altcoins like XRP and SOL FinancialContent^[2]. Exchanges such as Coinbase and Gemini Space Station saw stock prices fall below IPO levels amid reduced trading activity FinancialContent^[2]. Conversely, stablecoins like Tether (USDT) and USD Coin (USDC) gained traction as safe havens during the selloff, benefiting from increased adoption in turbulent markets FinancialContent^[2].

The industry's resilience remains a focal point. While overleveraged firms and algorithmic stablecoins face heightened risks, well-capitalized exchanges and miners with access to low-cost energy are better positioned to weather downturns FinancialContent^[2]. Regulatory scrutiny is expected to intensify, with calls for stricter oversight of crypto exchanges and stablecoins growing louder following recent events FinancialContent^[2].