Crypto Market Value Plunges $380 Billion in Record Selloff

Crypto's record selloff has resulted in the largest liquidation event of all time, surpassing the 2021 $10 billion rout on US crypto crackdown rumors. The total market value of all cryptocurrencies in circulation has been erased by $380 billion. This event has become the largest crypto liquidation event in history.

On September 12, 2025, the cryptocurrency market experienced a record selloff, leading to the largest liquidation event in history. This event surpassed the 2021 $10 billion rout during the US crypto crackdown rumors, with the total market value of all cryptocurrencies in circulation being erased by $380 billion. The liquidation event, which occurred on October 10, 2025, has become the largest crypto liquidation event ever recorded.

The volatility was triggered by a series of events, including a declaration by US President Donald Trump on October 10, 2025, which announced an additional 100% tariff on Chinese imports and export controls on software. This announcement caused significant market panic, leading to a cascade of sell orders that resulted in massive liquidations, according to a CryptoRank report.

The event saw Bitcoin dip from $125,000 to $104,000, Ethereum crash from $3,574 to $1,500, and altcoins lose between 60% and 90% of their value, with over $1 trillion in market cap wiped out in under three hours, the CryptoRank report said. More than 1.6 million traders were liquidated, with Coinglass estimating that the total liquidations could be as high as $30 billion, the CryptoRank report added.

The timing of the liquidation event has sparked speculation about insider trading and engineered liquidations, with some suggesting that the event was a purge characteristic of bull markets before a significant price increase, the CryptoRank report noted. Other theories point to thin liquidity and whale dominance as long-standing factors that have contributed to the volatility in the crypto market.

While the liquidation event has raised concerns about the stability of the crypto market, it is important to note that the current circumstances do not fit the criteria of past bear markets. However, immature reactions could potentially trigger bearish continuity, threatening past gains, the CryptoRank report warned.

The event has also been marked by renewed institutional interest, with companies like MARA Holdings making significant purchases of Bitcoin, signaling a renewed appetite for cryptocurrencies, as described in a CryptoNews article.

In conclusion, the record selloff and subsequent liquidation event have had a significant impact on the crypto market, wiping out $380 billion in market value. The event has sparked speculation about the causes and potential long-term implications for the market, but it remains to be seen how the crypto market will recover and adapt to these challenges.