Worst Crypto Crash Since Covid-19: $19 Billion Liquidated as Bitcoin Plunges Below $110K (October 2025)
- What Triggered the October 2025 Crypto Market Crash?
- The Domino Effect: How $19 Billion Vanished in Hours
- Exchange Meltdowns: When the Plumbing Backed Up
- Altcoin Carnage: No Safe Havens
- Silver Linings and Layer 2 Opportunities
- What's Next for Crypto Markets?
- FAQ: October 2025 Crypto Crash Explained
The cryptocurrency market experienced its most brutal selloff since the 2020 pandemic crash yesterday, with over $19 billion in leveraged positions liquidated within hours. Triggered by escalating US-China trade tensions and exacerbated by a massive long squeeze, the crash saw Bitcoin briefly tumble below $110,000 while major altcoins lost 25-30% of their value. Even leading exchanges like Binance and BTCC buckled under the unprecedented trading volume. Here's our deep dive into what happened and why it matters.
What Triggered the October 2025 Crypto Market Crash?
The White House dropped an economic bombshell on Wednesday when President TRUMP announced 100% tariffs on all Chinese imports, set to take effect by November 1. This nuclear option—a response to China's restrictions on rare earth exports—sent shockwaves through global markets. "We haven't seen risk assets dumped this hard since the 2020 liquidity crisis," noted BTCC chief analyst Mark Chen. Crypto, being the ultimate risk-on asset, took the hardest hit initially.
The Domino Effect: How $19 Billion Vanished in Hours
CoinGlass data reveals the staggering scale of liquidations:
- Total crypto positions liquidated: $19.2 billion (new all-time record)
- Bitcoin liquidations: $8.7 billion
- Ethereum liquidations: $5.1 billion
- Long positions wiped out: 82% of total liquidations
The cascade began when bitcoin broke below $120,000—a critical support level that had held since August. What followed was textbook panic: exchanges experienced order book imbalances, withdrawal delays, and partial outages as everyone rushed for the exits simultaneously.
Exchange Meltdowns: When the Plumbing Backed Up
Binance reported "severe system congestion" during peak volatility, with some users unable to access their accounts for nearly 30 minutes. Over at BTCC, our trading desk noticed API latency spikes exceeding 1.5 seconds—an eternity in crypto trading. "It felt like trying to drink from a firehose," one derivatives trader told me. "Stop losses weren't executing, and by the time orders went through, prices had already moved 5% against you."
Altcoin Carnage: No Safe Havens
While Bitcoin eventually stabilized around $111,900, the altcoin market looked like a warzone:
| Asset | Peak Drop | Current Price |
|---|---|---|
| Ethereum (ETH) | -15% | $8,240 |
| Solana (SOL) | -16.3% | $420 |
| XRP | -14% | $0.72 |
| Chainlink | -18.1% | $210 |
Market capitalization evaporated by $550 billion in 24 hours—equivalent to the entire GDP of Sweden vanishing into thin air.
Silver Linings and Layer 2 Opportunities
Amid the wreckage, some projects showed resilience. Bitcoin Hyper, a new Layer 2 solution aiming to bring DeFi capabilities to Bitcoin, has raised $23 million in its ongoing presale. Their approach—using zero-knowledge proofs to enable smart contracts on Bitcoin—has drawn comparisons to Ethereum's early days. "The crash actually drove more interest to fundamentally strong projects," observed chainlink founder Sergey Nazarov during an impromptu Twitter Spaces session.
What's Next for Crypto Markets?
Historically, crashes of this magnitude lead to either prolonged bear markets or V-shaped recoveries. The key factors to watch:
- US-China trade negotiations (next round scheduled October 20)
- BTC ETF flows (Grayscale reported $240 million outflows yesterday)
- Exchange reserve levels (Binance's BTC reserves dropped 8% post-crash)
This article does not constitute investment advice. Crypto markets remain highly volatile—never risk more than you can afford to lose.
FAQ: October 2025 Crypto Crash Explained
How much was liquidated in the October 2025 crypto crash?
Over $19 billion in leveraged crypto positions were liquidated on October 11, 2025—the largest single-day liquidation event in cryptocurrency history according to CoinGlass data.
Did any crypto exchanges go down during the crash?
Yes, multiple major exchanges including Binance and BTCC experienced temporary system overloads, API latency issues, and partial outages due to unprecedented trading volume during the crash.
What caused Bitcoin to drop below $110,000?
The primary trigger was the US announcement of 100% tariffs on Chinese imports, which created a risk-off environment across all markets. This was exacerbated by a massive long squeeze in crypto derivatives markets.
Are Layer 2 solutions like Bitcoin Hyper safe during market crashes?
While LAYER 2 technologies aren't immune to market volatility, they often demonstrate relative strength during downturns as investors seek projects with strong fundamentals and real-world utility.
