🚨 $150 BILLION LIQUIDATED IN 2025 CRASH OR JUST HOW CRYPTO REALLY WORKS?
According to CoinGlass, crypto derivatives liquidations hit ~$150B in 2025. At first glance, it looks like nonstop chaos. In reality, it’s something far more structural.
🔹 With $85.7 TRILLION in annual derivatives volume (~$264B per day), liquidations aren’t a collapse they’re the “leverage tax” in a market where perps and futures set the price, not spot.
🔹 The system held… until October 10.
When the U.S. announced aggressive tariffs on China, global markets flipped risk-off. Crypto was already over-leveraged, heavily long, and sitting at record open interest.
That was the trigger.
⚠️ In just 48 hours (Oct 10–11):
$19B+ liquidated
85–90% were long positions
BTC & ETH fell only 10–15%
Mid-caps & long-tail alts collapsed 50–80%
🔹 What changed? Auto-Deleveraging (ADL) kicked in.
When insurance funds failed, exchanges force-closed even profitable positions, turning hedges into real losses and amplifying the sell-off.
🔹 Liquidity made it worse.
The top 4 exchanges control ~62% of global derivatives volume. When their risk engines de-risked at the same time, forced selling became synchronized and violent.
📌 The takeaway:
$150B in liquidations isn’t panic it’s how a derivatives-driven market resets risk.
But when leverage is stacked, liquidity thins, and a macro shock hits, that “leverage tax” turns into a liquidation cascade.
🔥 In crypto, stories don’t move markets mechanics do.
#USGDPUpdate #BTC #BREAKING #crypto $BTC
