$1.5B Liquidations Hit Crypto Markets, Led by Ether and Dogecoin as Bitcoin Dips Below $112K

$1.5B Liquidation Hits Crypto Markets as Ether, Dogecoin Lead Losses
22 September 2025

More than 400,000 traders saw positions wiped out on Monday as leveraged longs in Ether, Dogecoin, XRP, and other major tokens fueled the largest crypto liquidation event in months.

According to Coinglass, over $1.5 billion in bullish wagers were liquidated, driving a sharp sell-off that hit smaller altcoins hardest.

Market Moves

• Ether (ETH), the second-largest cryptocurrency, fell as much as 9% to $4,075, with nearly $500 million in leveraged long positions liquidated. ETH was down 6% over 24 hours.
• Bitcoin (BTC) dropped nearly 3% to $111,998 before recovering slightly.
• Dogecoin (DOGE) led losses among major tokens, falling over 10%. Other notable declines included Solana (SOL), Cardano (ADA), BNB Chain (BNB), and Tron (TRX), each down at least 5% in the past 24 hours.

Liquidation Data and Market Sentiment
More than 407,000 traders were liquidated during the 24-hour period—the highest in recent months. Liquidations occur when leveraged positions are forcibly closed after prices move beyond a trader’s margin threshold, often triggering cascade effects and heightened volatility.

Traders use liquidation metrics to assess market sentiment and positioning. Large long liquidations often signal panic bottoms, while short liquidations can precede squeezes. Combined with open interest and funding rate data, liquidation trends help identify overcrowded trades and potential market reversals, providing strategic entry and exit points.

Macro Context
The liquidation wave comes amid ongoing macro uncertainty despite the Federal Reserve’s recent interest-rate cut.

“The market’s trajectory hinges critically on upcoming economic data and Fed signals,” said Nassar Achkar, chief strategy officer at CoinW. “This uncertainty is likely to sustain Bitcoin’s dominance and may cap upside for Ethereum and the broader DeFi sector despite their higher yield potential.”

Investors are also eyeing U.S. PMI data and jobless claims later this week. Powell’s Tuesday speech is expected to influence risk appetite—dovish signals could relieve pressure on altcoins after sharp losses, while cautious tones may reinforce defensive positioning in derivatives markets.

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