This is Biggest liquidation event in history of crypto and almost 20x bigger than the Covid crash of March 2020.
Date: 10-10-2025
The crypto market just witnessed something unprecedented a wave of liquidations so massive that it shook the entire digital economy. What happened today wasn’t just a dip, or even a crash it was the largest liquidation event in crypto history, dwarfing every collapse that came before it.
To put it into perspective:
COVID-19 Crash (March 2020): $1.2 Billion liquidated
FTX Collapse (November 2022): $1.6 Billion liquidated
Today’s Crash: $19.16 Billion liquidated
That’s 20 times larger than the COVID market wipeout a financial earthquake that left traders, institutions, and exchanges gasping for stability.
What Triggered This Massive Sell Off?
While the market moves in cycles, this particular event was fueled by a perfect storm of panic and leverage.
In recent months, the crypto market had grown increasingly overleveraged traders betting big on bullish futures, expecting endless upward momentum.But the market had other plans.When Bitcoin and altcoins suddenly dropped, these leveraged positions started to auto-liquidate, creating a chain reaction across exchanges. Billions vanished in hours as stop losses triggered and liquidation bots took over.
The Scale of the Damage
Over $19 billion worth of positions erased across exchanges.Hundreds of thousands of traders liquidated in a single day.Bitcoin saw one of its largest hourly red candles in years.Ethereum, Solana, and other major altcoins followed suit, losing double-digit percentages within minutes.Derivatives markets, which thrive on leverage, became the epicenter of chaos. Margin traders faced forced liquidations, while decentralized exchanges reported record-high transaction volumes as panic spread.
History Repeats, But Louder
The crypto market has always been volatile but never on this scale.Back in March 2020, the COVID crash sent shockwaves through the global financial system, taking $1.2 billion in crypto positions with it. Then came the FTX collapse in 2022, wiping out $1.6 billion and triggering a crisis of trust.But this time, the liquidation count shattered both records combined tenfold.This event marks a turning point: a reminder that high leverage can destroy markets faster than any external threat.
What Happens Next?
After every crash comes a reset and with it, opportunity.Massive liquidations often mark the end of over-leverage cycles, allowing markets to stabilize and rebuild organically.Smart investors and builders see these moments not as endings, but as cleansing fires burning away speculation and leaving behind the true believers and innovators.History shows that every major crypto crash has eventually led to stronger foundations:
After the COVID crash came the bull run of 2021.After FTX came the rise of on-chain transparency and self custody.After this? Perhaps a more mature, self regulated crypto era.
Thank you everyone 🙏
