Ethereum News Today: Bitcoin's Volatility Sparks $2.95B Crypto Liquidation Domino Effect

The cryptocurrency market experienced a seismic shift on October 27–28, 2025, as over $2.95 billion in leveraged positions were liquidated within a single hour, driven by sharp price swings in Bitcoin (BTC) and Ethereum (ETH). The event marked one of the most volatile periods of the year, with Bitcoin topping $116,000 before retreating, triggering a cascade of short liquidations and amplifying market uncertainty.

Bitcoin's rally above $116,000 on October 27 alone liquidated $19.15 million in short positions, primarily on Binance. Open interest expanded from $33 billion to over $36 billion, with 40% of positions held in shorts, creating a precarious environment for bearish traders. According to Coinglass data, a break above $110,000 could trigger up to $1.696 billion in short liquidations, while a drop below $106,000 might result in $1.3 billion in long liquidations. The BTC volatility index peaked at 1.97%, a six-month high, underscoring the fragility of leveraged positions.

Ethereum also saw significant turbulence, with global liquidations reaching $522 million in 24 hours, including a $6.09 million unwind on Hyperliquid, according to reports on Ethereum liquidations. Meanwhile, ETHZilla Corporation, a major Ethereum holder, liquidated $40 million in ETH to fund a share repurchase program, aiming to narrow its 30% discount to net asset value (NAV). The move sparked debate, with critics warning of potential downward pressure on ETH prices.

Corporate actions in traditional markets added to the volatility. Avnet, Inc. completed a $138 million share repurchase under its 2022 buyback plan, while OneSpaWorld Holdings repurchased $32.6 million in shares. These moves contrasted with the crypto sector's turmoil, where leveraged traders and institutional players navigated rapidly shifting liquidity dynamics.

Amid the chaos, Blazpay's audited crypto presale 2025 continued to attract attention, raising $925.7K in Phase 2 with 82.4% of its current stage sold. The project's third-party audit has bolstered investor confidence, positioning it as a rare example of transparency in a market often plagued by uncertainty.

However, not all developments were positive. Mt. Gox, the oldest crypto exchange under Chapter 15 bankruptcy, delayed creditor repayments by another year, pushing the deadline to October 2026. The trustee cited incomplete procedures as the primary obstacle, leaving many creditors still waiting for compensation despite the exchange's 2014 collapse.

Institutional players also made headlines. Bitmain, a leading Bitcoin miner, reportedly purchased 34,000 ETH ($135 million) from FalconX, signaling growing institutional confidence in Ethereum. Meanwhile, Leverage.Trading's September report highlighted how retail traders reduced risk ahead of the $1.5 billion "Red Monday" liquidation event in September, suggesting a growing awareness of market volatility.