- Crypto markets saw $1.7B in liquidations, with $1.6B from longs.
- Ethereum suffered the largest wipeout, losing $483M in 12 hours.
- Analysts expect October (“Uptober”) and a potential Fed rate cut to revive markets.
The crypto market just witnessed one of its heaviest liquidation days of 2025, with $1.7 billion wiped out in 24 hours. A massive chunk of that—more than $1.6B—came from long positions, leaving bullish traders wrecked. Bitcoin, Ethereum, XRP, and Solana all slid deep into the red, sparking fears of more downside before any recovery attempt.
Ethereum Leads the Selloff
Data from CoinGlass shows Ethereum traders took the hardest hit, losing around $483M in liquidations over just 12 hours. Bitcoin followed with $276M flushed out, while altcoins like XRP and Solana shed roughly 8% each. The sharp downturn ended weeks of bullish momentum that had been building ahead of the Fed’s first rate cut since December 2024.
September Curse Strikes Again
Historically, September has been one of the worst months for crypto, and this year is proving no different. Despite initial enthusiasm after the Sept. 17 Fed rate cut, markets quickly gave way to recession fears and liquidity drain from U.S. Treasury operations. Analysts note that these macro headwinds stacked against crypto traders, creating the perfect storm for mass liquidations.
Uptober on the Horizon?
Despite the bloodbath, many eyes are already turning toward October—dubbed “Uptober” for its track record of bullish rallies. Ten of the last twelve Octobers have closed green, with the past six posting strong gains. Analysts like Arthur Hayes argue that markets could shift into “up only” once the U.S. Treasury General Account (TGA) stabilizes near the $850B mark, easing liquidity pressures. Whether that plays out remains to be seen—but for now, traders are licking their wounds.
