Crypto markets have experienced several major liquidation waves, with billions of dollars in leveraged positions wiped out during periods of extreme volatility. From the COVID-19 market crash to the collapse of FTX, these events have shown how quickly market sentiment can shift and how leverage can amplify losses across Bitcoin, Ethereum, and the broader altcoin market.
The October 10, 2025, sell-off stands out as the largest widely reported crypto liquidation event on record. Following U.S. President Donald Trump’s announcement of a potential 100% tariff on Chinese imports, risk assets came under intense pressure. More than $19 billion in leveraged crypto positions were reportedly liquidated over approximately 24 hours, highlighting how geopolitical tensions and trade policy uncertainty can trigger a rapid unwinding of leveraged positions across the market.
The April 2021 market sell-off was another major liquidation event, with estimates approaching $10 billion in liquidated positions. After a period of strong price gains and elevated leverage, a sharp market reversal triggered widespread forced closures. On May 19, 2021, another severe downturn reportedly led to approximately $8.6 billion to $9 billion in liquidations, as regulatory concerns and negative market sentiment intensified selling pressure.
The COVID-19 crash in March 2020 marked an early example of how a global macroeconomic shock could spill into crypto markets. As investors rushed to reduce exposure to risk assets during the pandemic-driven market turmoil, cryptocurrency prices plunged and leveraged positions were forced to close. Estimates of crypto liquidations during the episode vary, with some historical figures placing the total around $1 billion to $1.2 billion.
In May 2022, the collapse of Terra’s UST stablecoin and the resulting implosion of the LUNA ecosystem sent shockwaves through the digital asset industry. The crisis undermined confidence in interconnected crypto projects and contributed to widespread selling and deleveraging. Some estimates put liquidations associated with the episode at approximately $1.6 billion, although reported totals depend on the time period and data provider.
The collapse of FTX in November 2022 triggered another major wave of uncertainty. As the exchange’s financial troubles became public and bankruptcy followed, confidence in centralized crypto platforms deteriorated. The resulting market stress contributed to forced position closures across digital assets, with some historical estimates placing associated liquidations at around $1.6 billion.
Crypto markets faced another major bout of volatility in August 2024, when the unwinding of yen-funded carry trades contributed to a broader global risk-off move. As investors reduced exposure to riskier assets, cryptocurrencies also came under pressure. Some estimates put crypto liquidations during the episode at roughly $1.2 billion, underscoring the market’s sensitivity to macroeconomic developments beyond the crypto industry.
These events demonstrate that major liquidation waves can emerge from very different catalysts, including geopolitical tensions, monetary and economic shocks, regulatory uncertainty, stablecoin failures, and exchange collapses. When prices move sharply against leveraged positions, exchanges may automatically close those positions, adding forced buying or selling to an already volatile market. This process can accelerate price movements and spread pressure across multiple crypto assets.
Looking ahead, traders may monitor derivatives open interest, funding rates, leverage levels, macroeconomic announcements, and geopolitical developments for signs of rising market stress. However, historical liquidation figures should be treated as estimates rather than perfectly comparable totals. Reported amounts vary by data provider, exchange coverage, and measurement window, and the figures cited here generally refer to the broader crypto derivatives market rather than Bitcoin alone.
