Crypto Sell-Off Wipes Out $1.5B, With Ether and Dogecoin Leading Losses as Bitcoin Slips

$1.5B Liquidation Hits Crypto Markets as Ether and Dogecoin Lead Losses
22 September 2025

Over 400,000 traders were liquidated on Monday as leveraged long positions in Ether, Dogecoin, XRP, and other major cryptocurrencies triggered one of the largest sell-offs in months.

Market Movements

• Ether (ETH) tumbled as much as 9% to $4,075, with nearly $500 million in leveraged longs liquidated. ETH closed the 24-hour period down 6%.
• Bitcoin (BTC) fell nearly 3% to $111,998 before partially rebounding.
• Dogecoin (DOGE) led losses among major tokens, dropping over 10%, while Solana (SOL), Cardano (ADA), BNB (BNB), and Tron (TRX) each declined at least 5%.

Understanding Liquidations
According to Coinglass, more than 407,000 traders were liquidated within 24 hours—the highest in recent months. Liquidations occur when leveraged positions surpass margin limits, often creating cascading sell-offs and amplified market volatility.

Large long liquidations can indicate panic selling, while short liquidations may precede squeezes. Combined with open interest and funding rate data, these trends help traders spot overcrowded positions and potential reversals in volatile markets.

Macro Context
This wave of liquidations comes amid continuing uncertainty despite the Federal Reserve’s recent rate cut.

“The market’s trajectory depends heavily on upcoming economic data and Fed signals,” said Nassar Achkar, chief strategy officer at CoinW. “Bitcoin’s dominance is likely to persist, potentially capping upside for Ethereum and the broader DeFi sector despite attractive yields.”

Investors are also monitoring U.S. PMI data and jobless claims this week. Powell’s Tuesday speech could influence risk appetite—dovish remarks may ease pressure on altcoins, while cautious signals could reinforce defensive positions in derivatives markets.