Institutions Stockpile 2.4M ETH Amid $1.9B Crypto Liquidation Surge

Ethereum and Bitcoin led a $1.9 billion surge in crypto liquidations on September 22, 2025, as leveraged positions across derivatives markets collapsed amid heightened volatility. Ether (ETH) fell nearly 9% to $4,075, triggering $506 million in long liquidations, while Bitcoin (BTC) dropped 3% to $111,998, with $288 million in forced closures. Over 407,000 traders were liquidated in 24 hours, marking the largest such event in recent months, according to Coinglass dataEther (ETH), Dogecoin (DOGE) Lead $1.5B Liquidation Wipeout as …^[1]. The selloff disproportionately impacted smaller tokens, with Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) all posting losses exceeding 5%.

The liquidation wave was driven by macroeconomic uncertainty, including the Federal Reserve’s recent interest-rate cut and pending U.S. economic data releases. Nassar Achkar, CoinW’s chief strategy officer, noted that Bitcoin’s dominance is likely to persist as defensive positioning intensifies in derivatives markets, capping upside potential for Ethereum and decentralized finance (DeFi) projectsEther (ETH), Dogecoin (DOGE) Lead $1.5B Liquidation Wipeout as …^[1]. Market analysts highlighted Ethereum’s critical support at $4,100, with further declines potentially pushing the price toward $3,700–$3,800 if key thresholds breakEthereum Price Crash By 6% Leads Crypto Market Liquidations, …^[2].

Institutional activity provided a counterpoint to the chaos. Bitmine Technologies, a firm led by Tom Lee, added 264,378 ETH to its reserves, increasing its holdings to 2.416 million coins—over 2% of Ethereum’s total supplyEthereum Price Crash By 6% Leads Crypto Market Liquidations, …^[2]. This accumulation, combined with the firm’s $11.4 billion in crypto and cash reserves, underscores growing institutional confidence in Ethereum’s long-term prospects. Lee emphasized Ethereum’s role in the “blockchain-driven transformation of finance,” citing Wall Street’s and artificial intelligence sectors’ adoption of the networkEthereum Price Crash By 6% Leads Crypto Market Liquidations, …^[2].

Liquidation heatmaps revealed concentrated risks in overleveraged positions. For Ethereum, a rebound to $4,500 could trigger $4.5 billion in short liquidations, while a drop to $3,560 might result in $900 million in long liquidations3 Altcoins Facing Potential Major Liquidations in the Final Week of ...^[4]. Bitcoin’s liquidation risks were similarly pronounced, with $31.03 million in longs wiped out in a single hour during the selloff. The cascading effect of forced closures amplified market volatility, dragging the total crypto market cap briefly below $4 trillionCrypto markets crash: $1.5B liquidated as Ethereum, Bitcoin lead …^[3].

Analysts warned that the Fed’s upcoming policy signals and U.S. PMI data will be pivotal in shaping short-term sentiment. A dovish tone from Fed Chair Jerome Powell during his speech on September 23 could ease pressure on altcoins, while hawkish signals would reinforce defensive positioningEther (ETH), Dogecoin (DOGE) Lead $1.5B Liquidation Wipeout as …^[1]. Meanwhile, Ethereum’s price correlation with Coinbase’s stock (NASDAQ: COIN) was highlighted as a potential indicator of future movements, with Ted Pillows noting that COIN’s 30%+ correction could foreshadow further ETH downside before a potential reversalEthereum Price Crash By 6% Leads Crypto Market Liquidations, …^[2].

The liquidation event underscored the dual-edged nature of leveraged trading. While high leverage amplifies gains, it also magnifies losses during rapid price swings. Coinglass data revealed that Ethereum’s liquidation heatmap showed red zones (short liquidations) and green zones (long liquidations) concentrated around $4,200–$4,300, suggesting potential reversal pointsWhat Is a Liquidation Data?^[5]. Traders are advised to monitor open interest and funding rate data to identify strategic entry or exit opportunitiesWhat Is a Liquidation Data?^[5].