The crypto market witnessed a brutal shakeout as more than $1.6 billion in leveraged positions were liquidated within the last 24 hours. These liquidations, triggered by sharp price movements across major cryptocurrencies like Bitcoin and Ethereum, have sent shockwaves through the trading community.
Traders using high leverage were caught off guard as sudden drops in price triggered automatic sell-offs by exchanges to cover potential losses. This event underscores the inherent risk of leveraged trading in volatile markets like crypto.
What Caused the Liquidation Wave?
While the exact cause varies by platform, several key factors contributed to this large-scale crypto liquidation:
- •Market Volatility: Bitcoin dropped sharply, dragging altcoins down with it. Sudden price swings triggered stop-losses and margin calls.
- •High Leverage Usage: Many traders had open positions with high leverage, magnifying their exposure to market moves.
- •Global Uncertainty: Economic data and geopolitical tensions may have played a role in sparking sell pressure.
This isn’t the first time such a large liquidation has happened, but the speed and scale of this one caught many off guard.
ALERT: $1.60B in crypto positions liquidated in the last 24 hours. pic.twitter.com/0FWNJJ2CLS
— Cointelegraph (@Cointelegraph) November 5, 2025
What It Means for Traders
For retail and professional traders alike, this serves as a cautionary tale. Risk management is crucial, especially in a market as fast-moving as crypto. Avoiding excessive leverage and setting tight stop-losses can help protect your capital.
With $1.6B in crypto liquidation wiping out positions overnight, it’s a harsh reminder that crypto remains a high-risk, high-reward space.