The crypto space faced seismic shifts in 2025, highlighted by a striking report detailing the total liquidations within the market. According to recent analyses, the year has seen approximately $150 billion evaporate due to forced liquidations across both long and short positions, a staggering figure that underscores the volatility inherent in cryptocurrency trading.
On October 10, 2025, a day now etched into Bitcoin and crypto lore, the market experienced the largest liquidation event in its history, with liquidations exceeding $19 billion. This monumental surge, part of a broader routine of leverage washing, manifested in average daily liquidations fluctuating between $400 million and $500 million. Despite these sweeping changes, the long-term impact on Bitcoin prices and overall market structure appeared limited, thanks to the collateral realities of market swings.
However, the situation was made particularly acute by the systematic stress concentrated in just a few pivotal events. The October 10 debacle served as a bellwether for the market, plunging both long and short leveraged positions into turmoil.
Reports suggest that while official figures pegged the liquidations at $19 billion, the actual scale could be even more significant, with estimates ranging from $30 billion to $40 billion. This would mark a stark increase over the previous record set on April 18, 2021, when long liquidations accounted for a dramatic 90% of total liquidations that day. Such data paints a vivid picture of a market saturated with ‘crowded long leverage,’ leading many to question the underlying stability of Bitcoin and its concomitant derivatives.
What Triggered This Market Chaos?
At the heart of the October 10 crash was an announcement by former President Donald Trump regarding a staggering 100% tariff on Chinese goods. This proclamation prompted widespread panic among investors, who adopted a decidedly “risk-off” mentality in anticipation of escalating trade tensions. While the tariff announcement served as a flashpoint, the real root causes were steeped in market dynamics, particularly high long leverage utilization exacerbated by burgeoning gaps between spot and futures prices.
The interplay of high valuations and considerable leverage created a precarious environment, making the market susceptible to shifts in investor sentiment. Analysts argue that the tariff announcement merely acted as a catalyst, triggering an inevitable market correction that had been looming due to entrenched speculative behaviors.
As of today, Bitcoin is trading around $87,400, reflecting a nearly 2% drop in the past 24 hours, as noted by current market data. Observers remain attentive, mindful that the market’s complex tapestry continues to bear the scars of its turbulent 2025 trajectory.
