The crypto market witnessed one of its biggest shakeouts of the year as overleveraged traders were wiped out in a $1.8 billion liquidation frenzy on Monday. Data from CoinGlass revealed more than 370,000 traders were forced out of their positions within 24 hours, making it the largest long liquidation event of 2025 so far.

Bitcoin fell sharply below $112,000 on Coinbase, while Ether plunged under $4,150 in its steepest pullback since mid-August. The overall crypto market cap lost more than $150 billion, sliding to $3.95 trillion before stabilizing at temporary support levels. Altcoins were hit even harder, with Ether alone seeing over $500 million in liquidations, more than double the losses from Bitcoin positions.

Analysts argue the sell-off was driven more by excessive leverage and technical factors than by weakening fundamentals. Real Vision founder Raoul Pal noted this cycle is common in crypto, where markets often get overleveraged before major breakouts, resulting in a wave of forced liquidations that sidelines retail traders.

Some experts point to extreme altcoin leverage as the main trigger, with cascading liquidations amplifying the decline. Still, strategists like CoinW’s Nassar Achkar suggest the flushout is a short-term reset rather than the end of the bull run, as macro conditions remain favorable for risk assets like Bitcoin.

Market watchers warn more volatility could follow. IG analyst Tony Sycamore said Bitcoin may dip further toward the $105,000–$100,000 support range, aligning with its 200-day moving average, before staging a rebound into year-end. Despite the drop, Bitcoin’s current correction stands at just 9.5% from its all-time high, relatively shallow compared to previous bull markets.

Traders may find some relief in history: September has often been tough for Bitcoin, but October—dubbed “Uptober”—has historically delivered stronger gains.