Bitcoin liquidations 2025: A 4% intraday decline in 2025 triggered the year’s largest liquidation wave, erasing over $746 million in long positions and exposing heavy hidden leverage. This spike shows that apparent price stability near $120,000 masked concentrated liquidation risk among overleveraged traders.
Meta description: Bitcoin liquidations 2025: 4% drop triggered record $746M long liquidations; learn causes, monthly patterns, and risk signals from COINOTAG analysis. Read now for risk mitigation steps.
Bitcoin’s 4% decline in 2025 sparked the year’s largest liquidation wave, revealing concentrated leverage beneath apparent price stability and reaffirming that herd behavior can magnify volatility quickly.
- Bitcoin’s 4% drop triggered the largest 2025 liquidations, exposing hidden leverage risks despite stable prices near $120,000 levels.
- Long liquidations peaked at $746M in May as traders overleveraged, showing how herd behavior magnifies volatility in calm markets.
- Despite steady Bitcoin prices, recurring liquidation waves prove traders continue chasing leverage, fueling instability beneath the surface.
What caused the 2025 Bitcoin liquidation wave?
Bitcoin liquidations 2025 were driven by a concentrated, rapid 4% sell-off that hit thin liquidity bands and forced mass long-liquidations. Market structure combined elevated open interest, sustained positive funding (crowded longs), and clustered stop-loss levels, producing outsized liquidation volumes relative to the price move.
How did monthly patterns evolve from March to September?
Data compiled by analyst Doctor Profit shows distinct monthly shifts: moderate liquidation activity in March, heightened spikes in April, a peak event in May, and sustained elevated volumes through September. These patterns indicate increasing leverage appetite despite flat price action.
‘,
‘
🔒 Secure and Fast Transactions
Diversify your investments with a wide range of coins. Join now!
‘,
‘
💎 The Easiest Way to Invest in Crypto
Dont wait to get started. Click now and discover the advantages!
‘
];
var adplace = document.getElementById(“ads-binance”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexBinance”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBinance.length) : sessperindex;
adplace.innerHTML = adscodesBinance[adsindex];
sessperindex = adsindex === adscodesBinance.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexBinance”, sessperindex);
}
})();
Bitcoin traded in a horizontal band roughly between $100,000 and $140,000 while liquidation volumes swung widely. The core issue: market participants used leverage to amplify exposure inside a narrow price channel. Accumulation-distribution metrics showed continued speculative participation, so nominal price calm hid mounting liquidation vulnerability.
Risk managers should reduce position size when open interest rises faster than realized volatility. Traders must monitor funding rates, orderbook depth and concentrated liquidity below price levels to identify potential cascade points. Diversifying execution and using staggered stop management can limit forced liquidation losses.
Long liquidations peaked at approximately $746 million during the May surge, according to data shared by analyst Doctor Profit, driven by clustered long positions and thin liquidity bands below the market.
No. Stable prices can coincide with growing leverage and concentrated liquidity. When open interest and funding rates climb while price moves are muted, liquidation risk increases because stops and margin calls are closer to dominant price levels.
‘
];
var adplace = document.getElementById(“ads-htx”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexHtx”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesHtx.length) : sessperindex;
adplace.innerHTML = adscodesHtx[adsindex];
sessperindex = adsindex === adscodesHtx.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexHtx”, sessperindex);
}
})();