Crypto markets were rocked on Monday after nearly $2 billion in leveraged positions were wiped out in one of the year’s largest shakeouts. Analysts say the move looks more like a technical reset than a sign of deeper weakness.
According to CoinGlass, over 370,000 traders lost positions worth around $1.8 billion in just 24 hours. Bitcoin and Ether traders carried the brunt of the blow, while altcoins also faced heavy selling pressure.
The sudden flush coincided with a steep drop in total crypto market capitalization, which shed $150 billion to hit $3.95 trillion, its lowest level in two weeks. Bitcoin briefly slipped under $112,000 on Coinbase, while Ether dipped below $4,150 — marking its sharpest pullback since August.
For now, prices have stabilized, but September’s historical volatility suggests more turbulence could follow.
Same Old Story: Too Much Leverage
Veteran investor Raoul Pal described the event as a classic crypto cycle: traders pile into leveraged longs anticipating a breakout, the move fails on the first attempt, and overexposed positions are liquidated before a real rally can develop.
CoinGlass confirmed that this was the largest long wipeout of the year, rivaling similar liquidation waves earlier in 2025.
Altcoins at the Center of the Storm
Not everyone blames Bitcoin or Ether. Market researcher Bull Theory pointed to excessive leverage in altcoins as the main trigger. Ether alone saw over $500 million in liquidations — more than double that of Bitcoin.
“When alt leverage gets stretched, all it takes is a sharp dip to start a chain reaction,” Bull Theory noted, adding that such corrections are often necessary to reset market conditions.
Nassar Achkar, CSO of CoinW, agreed, arguing that the flushout looks more like a “short-term adjustment” within a longer-term bull market, especially as global conditions remain favorable for risk assets.
Where Could Bitcoin Go Next?
Technical analysts suggest that Bitcoin may need a deeper pullback before resuming its uptrend. IG’s Tony Sycamore pointed out that BTC has been moving independently of stocks and gold, with the recent decline reflecting an overheated market that ran too far too fast.
“A dip into the $105k–$100k zone, near the 200-day moving average at $103,700, would make sense,” Sycamore said. “It would clear out weak hands and create a strong base for another rally heading into year-end.”
So far, Bitcoin has corrected less than 10% from its mid-August high — relatively mild compared to past bull market retracements. Historically, September has been a red month, with losses in 8 of the last 13 years, but October (“Uptober”) often flips momentum strongly in the other direction.
For now, the market has survived another flush. The real question: was that the worst of it, or just the start of a deeper reset?
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