Crypto Liquidation Surge: $1.7 Billion Wiped Out in 24 Hours, Over 400,000 Traders Liquidated

The crypto liquidation surge has hit hard, with $1.7 billion in positions liquidated across derivatives markets in the past 24 hours as of September 23, 2025, according to Coinglass data. Over 400,000 traders were affected, primarily long positions at $1.6 billion, amid Bitcoin's 1% dip to $114,467 and broader market caution post-Fed rate cut. This crypto liquidation surge marks the largest since March 2025, highlighting leverage risks in a $3.5 trillion cryptocurrency market. This article breaks down the crypto liquidation surge details, affected assets, trader impacts, market context, and outlook.

Liquidation Breakdown

The crypto liquidation surge saw $1.7 billion erased, with longs comprising $1.6 billion and shorts $100 million. Bitcoin led with $650 million liquidated, followed by Ethereum at $450 million and Solana at $200 million. This crypto liquidation surge occurred on major exchanges like Binance ($800 million) and Bybit ($500 million), triggered by a 2.1% market cap drop to $3.5 trillion.

• Total: $1.7 billion.
• Longs: $1.6 billion.
• Exchanges: Binance, Bybit dominant.

Affected Assets and Traders

Over 400,000 traders faced liquidation in the crypto liquidation surge, with retail users hit hardest on leveraged futures. Bitcoin's $650 million wipeout stemmed from positions above $115,000, while Ethereum's $450 million reflected DeFi exposure. Solana and XRP saw $200 million and $150 million respectively, underscoring altcoin vulnerability.

• Traders: 400,000+ impacted.
• BTC: $650 million.
• ETH: $450 million.

Market Context

The crypto liquidation surge follows the Fed's priced-in 25 basis point cut, with fading hype leading to a "sell the news" reaction. DXY resilience at 97.30 capped risk assets, while funding rates spiked to 0.05%, signaling overleverage. In a $3.5 trillion market, long-term holders remain steady, but retail caution prevails.

• Fed cut: Priced-in, no rally.
• DXY: 97.30 strong.
• Funding: 0.05% spike.

Implications for Investors

The crypto liquidation surge warns of leverage risks, urging reduced exposure in futures. It may accelerate altcoin rotations if Bitcoin stabilizes above $114,000. In a $3.5 trillion market, this highlights the need for spot holdings and diversification.

• Risks: Leverage in futures.
• Strategy: Spot and alt rotations.
• Need: Diversification.

Key Takeaways

The crypto liquidation surge of $1.7 billion liquidated over 400,000 traders on September 23, 2025, with BTC and ETH hardest hit. In a $3.5 trillion market, monitor $114,000 support for rebounds. Reduce leverage for safety.