The crypto market crash was driven by massive leveraged liquidations, falling trading volume, institutional ETF outflows and major options expiries, causing a drop below $4T. Immediate sell pressure hit BTC and ETH hardest, while high leverage raises risk of further short-term downside.
Mass liquidations and volume decline triggered sharp losses.
ETF issuers and options expiry compounded sell-side pressure.
BTC and ETH led outflows; 23 Sept cap fell to $3.91T.
Meta description: Crypto market crash: causes and next steps — liquidations, ETF outflows, and options expiry drove the dip. Read analysis and takeaways now.
What caused the crypto market crash on September 23?
The crypto market crash on September 23 was caused by concentrated liquidations of leveraged longs, a steep drop in trading volume, institutional ETF sell-offs and a large options expiry that amplified stop losses and sell pressure across major tokens.
How large were liquidations and where did they occur?
On September 23, total liquidations exceeded $1.7 billion, the largest session so far this year. Long positions accounted for roughly $1.65B and shorts for about $145M. Major derivatives platforms impacted included Bybit, Binance and OKX, with Bybit seeing nearly $1B in affected valuation according to market-data trackers (CoinGlass referenced as source, plain text).
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The single-largest liquidation cluster hit Ethereum, at about $497 million. Bitcoin experienced concentrated clusters around $111.5K (longs) and $113.8K (shorts), which act as price magnets. Solana recorded nearly $100M in wiped capital during the same period.
Daily market trading volume fell by more than 12.93%, with aggregate market volume near $294M and Bitcoin-specific volume at roughly $55B, reflecting reduced liquidity that magnified price moves.
Why did options expiry and ETFs worsen the sell-off?
Large options expiries triggered mechanical selling and stop-loss cascades. Bitcoin had roughly $265M in call options and $155M in put options expiring, while Ethereum saw about $67M of expiries — nearly half a billion dollars of notional exposure reaching settlement, exerting immediate market pressure.
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Concurrently, institutional Bitcoin ETFs recorded net outflows exceeding $363M, signaling capital rotation out of crypto products. Reports (Whale Insider referenced as source, plain text) noted Fidelity sold 7,454 ETH (~$31.2M), contributing to ETH selling pressure.
Bitcoin and Ethereum led headline losses due to concentrated liquidations and ETF flows. Solana and other high-leverage altcoins saw outsized percentage declines as derivative positions unwound. Exchange-level liquidation data shows the largest impacts on Bybit, Binance and OKX.
The market may undergo further near-term volatility as leverage unwinds, but historical patterns suggest resets like this can precede broader rallies. Traders should watch liquidity, open interest and ETF flow indicators for early signs of stabilization.
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