Crypto Market Faces Unprecedented $41B Liquidation Since October 1
The post Crypto Market Faces Unprecedented $41B Liquidation Since October 1 appeared on BitcoinEthereumNews.com.
TLDR: $41B liquidated in crypto since October 1, with $20B lost in one day. Daily liquidations now reach $100M–$1B, even on stable global market days. Open interest collapsed, thinning liquidity and amplifying price volatility. Digital Asset Market Clarity Act targets wash-trading, spoofing, and transparency gaps. Crypto markets have experienced unprecedented sell-offs since early October, with $41 billion liquidated across major assets. On October 10 alone, nearly $20 billion vanished in less than 24 hours. This surge occurred despite stable global equities, strong corporate earnings, and no major macro shocks. Traders and liquidity providers continue facing pressure as the market reacts to ongoing structural shifts. Record Liquidations Shake Crypto Market Structure Data from Bull Theory highlight the scale of recent crypto liquidations. Between October 1 and November 15, liquidations totaled over $41 billion, with October 10 marking the largest single-day event in history. The market displayed systematic selling, with minor pauses followed by waves of long liquidations. Every attempted recovery was quickly reversed, leaving traders exposed and open interest diminished. The liquidation events occurred without major on-chain failures, exchange collapses, or regulatory announcements. Equities recovered swiftly, and assets like the S&P 500 and NVIDIA posted gains, yet crypto remained in decline. Daily liquidation patterns reveal concentrated flushes of $100 million to $1 billion, often within hours. These episodes suggest either large entities unwinding positions or structural deleveraging among trading firms. Open interest across major crypto pairs collapsed, thinning liquidity and increasing sensitivity to small market movements. Exchanges reported rapid losses for retail traders, though no specific funds have publicly confirmed exposure. Data shows the market’s behavior has shifted structurally, responding to minor price moves with outsized liquidations. Despite repeated scrutiny, no official explanations or evidence identifying responsible parties have emerged. The events underscore a significant transparency gap in crypto markets. Without…
Filed under: News - @ November 22, 2025 12:22 am