On August 25-26, 2025, the cryptocurrency market experienced a sharp downturn, leading to approximately $900 million in liquidations, significantly impacting Bitcoin and Ethereum.
Overview of Liquidations
The downturn, occurring on August 25–26, 2025, resulted in about $900 million in liquidations. This situation adversely affected major cryptocurrencies, primarily Bitcoin and Ethereum.
Impact on Major Cryptocurrencies
Evidence indicated that whale traders and institutional investors were at the core of the events with significant liquidations of BTC and ETH. Positions worth $320 million in Ethereum and $277 million in Bitcoin were wiped out.
Future of the Crypto Market
The incidents underline the vulnerability of crypto markets to liquidated positions. Questions about market stability during illiquid periods have become relevant. Analysts indicate a high likelihood of changes in trading strategies for both individual and institutional investors.
The sharp downturn and resulting liquidations in the crypto market once again underline the risks of the investment process and the need to reassess trading approaches among market participants.
