Average Crypto Trader Losses Reached $500 Million Per Day in 2025

RBK-cryptoPublicado a 2025-12-25Actualizado a 2025-12-25

Resumen

According to a Coinglass report, the total volume of forced liquidations of margin-based trading positions on crypto exchanges neared $150 billion in 2025. The estimated average daily liquidation volume throughout the year ranged from $400 million to $500 million. A record-breaking single-day liquidation event occurred on October 11, accounting for nearly 15% of the annual total with nearly $20 billion in futures positions liquidated. This was triggered by US President Donald Trump's announcement of new 100% tariffs on Chinese imports and export controls on critical software, which sparked fears of a new trade war and caused a sharp shift towards risk-off sentiment. Bitcoin and Ethereum fell by 10-15% at their peak, while many altcoins crashed by 80% or more. The crash exposed key market vulnerabilities, including reliance on opaque liquidation mechanisms, fragile infrastructure under peak load, and a lack of effective circuit breakers common on traditional exchanges. Unlike the Terra (LUNA) collapse in 2022, this event did not lead to a cascade of institutional investor defaults, as the risks were concentrated in specific strategies and assets rather than being systemic.

In 2025, the total volume of forced liquidations of margin-based trading positions on cryptocurrency exchanges approached $150 billion, according to a Coinglass report. The estimated average daily liquidation rate throughout the year ranged from $400 million to $500 million.

This refers to the nominal value of positions including leverage (a $100 position with 10x leverage counts as $1000 in the total loss amount), but even with this adjustment, the scale of the losses remains impressive.

Nearly 15% of the annual liquidation volume occurred in a single day—on the night of October 11th, when the crypto market experienced the largest cascade of futures position liquidations in history, with a total volume of nearly $20 billion. This set an absolute record for the volume of forcibly closed trading positions on cryptocurrency exchanges.

The event occurred against the backdrop of U.S. President Donald Trump announcing new 100% tariffs on imports from China, as well as export controls on critical software. This sharply increased expectations of a new trade war, as Coinglass writes, which forced markets into a "risk-off" mode, meaning a retreat from high-risk assets, including Bitcoin and other cryptocurrencies.

Experts note that the scale of the consequences was determined not only by external factors but also by the structure of the leverage used and the functioning of liquidation mechanisms. During exchange overload, Auto-Deleveraging (ADL) mechanisms were triggered, and trades were executed at unfavorable prices, causing losses even for profitable traders.

Bitcoin and Ethereum lost 10–15% at their peak, while many altcoins collapsed by 80% or more.

The Coinglass report stated that the crash of that day revealed key market vulnerabilities: reliance on opaque liquidation mechanisms, the fragility of infrastructure under peak loads, and the lack of effective circuit breakers that exist on traditional exchanges.

Unlike the crash of the Terra (LUNA) project in 2022, this collapse did not lead to a series of defaults by institutional investors. The risks were not systemic and were concentrated in specific strategies and assets, noted Coinglass.

How the Base Blockchain Ecosystem is Structured. Top 5 Applications

AI Outperformed Humans in a Crypto Trading Tournament. What Were the Results

Miner "Capitulation" Called a Bullish Factor for Bitcoin. Why

Preguntas relacionadas

QWhat was the average daily liquidation amount for crypto traders in 2025 according to the Coinglass report?

AThe average daily liquidation amount ranged from $400 million to $500 million in 2025.

QWhat event on October 11 triggered the largest cascade of futures liquidations in crypto market history?

AUS President Donald Trump announced new 100% tariffs on imports from China and export controls on critical software, which sharply increased expectations of a new trade war.

QWhat were the maximum losses for Bitcoin and Ethereum during the market crash described in the article?

ABitcoin and Ethereum lost 10-15% at their maximum, while many altcoins collapsed by 80% or more.

QWhat key market vulnerabilities were exposed by the crash according to the Coinglass report?

AThe key vulnerabilities were dependence on opaque liquidation mechanisms, infrastructure fragility during peak loads, and the lack of effective circuit breakers that exist on traditional exchanges.

QHow did this market crash differ from the Terra (LUNA) collapse in 2022 in terms of institutional impact?

AUnlike the Terra collapse, this crash did not lead to a series of defaults by institutional investors. The risks were not systemic and were concentrated in specific strategies and assets.

Lecturas Relacionadas

BonkDAO Treasury Drain Shows Solana Governance Risk Is Real

The BonkDAO treasury suffered an approximately $20 million drain due to a malicious governance proposal passed through the Realms platform on Solana. This incident highlights governance as a critical attack surface for DAOs, distinct from smart contract exploits. The attack leveraged the DAO's own voting mechanics to move funds, demonstrating that flawed governance design—such as weak proposal rules or voter weight calculations—can be exploited even when the underlying blockchain functions correctly. The event serves as a warning for Solana DAOs to rigorously review and strengthen their governance safeguards, including quorum thresholds, timelocks, and execution permissions. While damaging to community trust, especially for the prominent BONK meme ecosystem, the issue is not a failure of the Solana base layer but a widespread application-level risk common across blockchain ecosystems.

bitcoinistHace 13 min(s)

BonkDAO Treasury Drain Shows Solana Governance Risk Is Real

bitcoinistHace 13 min(s)

Midnight Token Falls After $13M Wanchain Bridge Exploit

Midnight's NIGHT token plummeted roughly 30% following a $13.2 million exploit on a Wanchain cross-chain bridge. The attacker drained 515 million NIGHT tokens by exploiting a signature reuse flaw in the bridge's infrastructure, not the core Cardano or Midnight networks. This incident highlights the persistent vulnerability of cross-chain bridges, which are critical for asset transfers but introduce complex security risks. While the underlying blockchains remained secure, the token's price suffered due to liquidity disruption and lost market confidence. The response from Wanchain, including pausing the affected bridge and providing clear communication on recovery efforts, will be crucial for stabilizing the situation. The event serves as a reminder for traders to factor in bridge-related risks when evaluating tokens reliant on cross-chain liquidity.

bitcoinistHace 28 min(s)

Midnight Token Falls After $13M Wanchain Bridge Exploit

bitcoinistHace 28 min(s)

Bitcoin: Will a $130.5M whale move derail BTC’s push toward $70K?

A long-term Bitcoin whale moved 2,000 BTC (worth $130.5 million), transferring 800 BTC to an OTC desk (Cumberland) and 1,200 BTC to new addresses. While this suggests a potential partial sale, it did not negatively impact BTC's price, which continued its bullish trend to around $66,195. Technical indicators like the Stochastic Momentum Index and Squeeze Momentum Indicator remain positive, supporting a potential push toward $70,000. However, on-chain metrics show rising pressure. The Bitcoin Fund Flow Ratio and Exchange Netflow have turned positive, indicating increased inflows to exchanges. This typically raises the risk of short-term selling, which could weaken momentum and potentially test support near $64,800 if profit-taking persists.

ambcryptoHace 41 min(s)

Bitcoin: Will a $130.5M whale move derail BTC’s push toward $70K?

ambcryptoHace 41 min(s)

XRP Ledger Axelar Integration Opens A New Cross-Chain DeFi Route

The XRP Ledger has integrated with Axelar's interoperability stack, enabling XRP and other XRPL-native assets to move into cross-chain DeFi environments on EVM and Cosmos-based networks. This provides a bridge for XRP's significant liquidity to reach a wider array of decentralized finance applications beyond its native ecosystem. Importantly, the integration does not make XRPL a native EVM chain; it focuses on improving connectivity and utility. The move addresses the growing market expectation for multi-chain asset usability. However, the ultimate success of this integration depends on actual user adoption, the building of liquidity in DeFi protocols, and the development of practical cross-chain applications utilizing XRP.

bitcoinistHace 43 min(s)

XRP Ledger Axelar Integration Opens A New Cross-Chain DeFi Route

bitcoinistHace 43 min(s)

Ripple MiCA Authorization Opens A Wider European Payments Lane

Ripple has obtained full MiCA (Markets in Crypto-Assets) authorization in Europe. This regulatory approval provides a clearer path for Ripple's corporate payment entity to offer crypto-enabled payment services across the European Union and European Economic Area. It is important to note that this authorization specifically applies to Ripple's business operations under MiCA, not a blanket endorsement of XRP trading itself. The authorization is significant for Ripple's strategy, as the unified MiCA framework simplifies scaling across Europe for compliant firms. This regulatory clarity can facilitate partnerships with banks, payment providers, and institutional clients by addressing compliance concerns. While the development supports the broader XRP narrative by reducing regulatory uncertainty for Ripple's core payments business, it does not directly translate to regulatory approval for XRP as an investment product. The true impact on XRP will depend on whether this regulatory milestone leads to increased adoption, new client partnerships, and greater payment volume in European corridors. The approval reflects a broader trend where crypto firms are seeking regulatory footing in Europe due to MiCA's comprehensive rulebook, contrasting with the uncertain regulatory landscape in the United States. Ultimately, the license is a permission to operate; its success hinges on Ripple's ability to convert this regulatory advantage into tangible business growth and adoption.

bitcoinistHace 57 min(s)

Ripple MiCA Authorization Opens A Wider European Payments Lane

bitcoinistHace 57 min(s)

Trading

Spot