Leveraged traders across crypto markets faced automatic position closures on October 8 as prices tumbled, with ether liquidations reaching $356 million and bitcoin liquidations hitting $298 million over a 24-hour window. The combined flush exceeded $1.19 billion, according to CoinDesk.
Ether positions were wiped out at a rate six times higher than bitcoin’s relative to market size. Liquidations totaled $1.2 million per $1 billion of ether market value, compared with $180,000 per $1 billion for bitcoin. The disparity underscores how leveraged bets in smaller-cap assets amplify losses during volatility.
Bitcoin fell from $83,200 to $80,400 late Thursday after Federal Reserve minutes signaled officials expected another rate hike before year-end. Pentagon reports suggesting renewed combat preparations in Iran compounded selling pressure. The largest single ether position wiped out on decentralized exchange Hyperliquid reached $20 million.
Traders had accumulated leverage throughout the preceding week as bitcoin traded between $83,000 and $87,000. The buildup left positions vulnerable to sharp moves. Solana liquidations added $71 million to the total, while XRP saw $34 million liquidated and NEAR $25 million. All other tokens combined accounted for $119 million in liquidations.
Bitcoin recovered to $82,200 after President Trump stated the U.S. would not strike Iran before midterm elections. The rebound triggered $25 million in additional liquidations over four hours. In the hour immediately before the CoinDesk article was published at 12:04 a.m. EDT on October 9, $12 million of $13 million in liquidations came from short positions, indicating bearish traders were caught off guard by the bounce.
The liquidation cascade occurs when leveraged traders’ collateral is depleted by losses, forcing exchanges to automatically close positions. The forced selling into falling markets can accelerate price declines and trigger additional liquidations.
Ethereum researcher Justin Drake warned that artificial intelligence could break the cryptographic math securing crypto wallets sooner than expected, adding another layer of concern to market participants already contending with macro headwinds and leverage unwinds.
The event unfolded one day before the anniversary of October 10, 2025, when $19 billion in liquidations occurred in a single day, marking a prior record for the metric.
