Biggest long liquidation of year: 5 things to know in Bitcoin this week
Bitcoin opened the week under pressure, tumbling toward $112,000 in what data providers flagged as the largest Bitcoin long liquidation of 2025. The sharp move wiped out billions in leveraged positions, shaking market confidence and reminding traders of crypto’s persistent volatility. Sentiment turned cautious, with some investors opting to step back until key macro signals arrive later in the week.
Attention now shifts to Federal Reserve Chair Jerome Powell’s remarks on Tuesday and the upcoming PCE inflation data on Friday. Both events could set the tone for risk assets and dictate whether Bitcoin stabilizes or faces further downside. With opinions split, some expect a possible retest near the $100,000 mark, while others see room for a rapid rebound if macro conditions prove supportive.Cointelegraph+2Federal Reserve+2
Why the biggest Bitcoin long liquidation of 2025 happened
A ~$3,000 intraday swing pushed BTC toward $112K, wiping out about $1.7 billion in 24-hour liquidations across crypto, overwhelmingly from long positions—the largest single-day long wipeout of the year. Open-interest resets and forced de-leveraging amplified the move.
Short-term, the path of least resistance is being shaped by macro expectations: after the Fed’s first 2025 rate cut (-25 bps to 4.00%–4.25%), futures pricing continues to lean dovish into the Oct. 29 FOMC.
What the biggest Bitcoin long liquidation of 2025 means for traders
Historically, liquidation cascades clear excessive leverage, sometimes setting a foundation for stabilization if macro conditions don’t deteriorate further. This week, Powell’s tone and the PCE print could swing risk appetite, funding, and flows on major venues.
$112K support vs. $100K magnet
Intraday price action probed the low-$112Ks. Some technicians see scope for a bounce toward recent local resistance (~$116K–$120K); others warn a deeper sweep toward the six-figure handle remains possible if liquidity pockets below are tested. (Views compiled from trader commentary summarized by Cointelegraph.)
Powell Tuesday, PCE Friday
Powell speech (Tue, Sept. 23, Warwick, RI)
A scheduled “Economic Outlook” conversation at the Greater Providence Chamber of Commerce keeps rate-path signaling in focus.PCE price index (Fri, Sept. 26)
The BEA’s preferred inflation gauge for the Fed could reinforce or challenge current easing bets.
Bitcoin-related announcement?
Reports on X hint at “massive political news” this week with potential implications for Bitcoin and altcoins. As of publication, details are unconfirmed; coverage frames it as speculation influencing sentiment alongside macro drivers.
On-chain cycle check: “Pre-euphoria” signal
CryptoQuant’s LTH vs. STH MVRV spread—using a 30-day rolling difference—has moved into what one contributor labels “pre-euphoria,” a phase that preceded prior cycle blow-offs. Signals are probabilistic, not guarantees, but they align with late-cycle profit patterns.
<section id=”howto”> <h3>How to navigate Bitcoin liquidation spikes (risk-first)</h3> <ol> <li id=”step1″><strong>Step 1:</strong> Check 24h liquidations and heatmaps on CoinGlass to gauge positioning stress.</li> <li id=”step2″><strong>Step 2:</strong> Map nearby liquidity and recent support/resistance; avoid chasing the first bounce.</li> <li id=”step3″><strong>Step 3:</strong> Right-size leverage (or go spot); pre-define max loss with hard stops.</li> <li id=”step4″><strong>Step 4:</strong> Watch macro catalysts (Fed speakers, PCE/claims); scale exposure around event risk.</li> <li id=”step5″><strong>Step 5:</strong> Reassess after funding resets/OI rebuild; look for breadth and spot bid strength.</li> </ol> <p><em>Note: Process may vary by platform and jurisdiction. Confirm requirements before acting.</em></p> </section> :contentReference[oaicite:15]{index=15}
Context & Analysis
Analysis: Liquidity-driven drawdowns amid elevated leverage are common near cycle highs. The combination of a first-cut Fed, a market leaning dovish into October, and unverified political chatter increases headline sensitivity. If PCE cools and Powell sounds patient, dips can stabilize; hotter inflation or hawkish cues could extend de-risking.
Conclusion
Traders are closely watching policy signals as Bitcoin hovers in the low-$110Ks after a sharp drop. The market remains fragile, and sentiment is split on whether the next move brings stability or deeper declines. Volatility risk stays elevated, especially with heavy liquidations already shaking investor confidence.
This week’s spotlight is on Fed Chair Jerome Powell’s remarks and the PCE inflation data release. These macro drivers will likely decide whether Bitcoin can hold current levels or test liquidity closer to $100,000. Until clarity emerges, keeping leverage light and managing exposure to event risk remains the cautious approach.
FAQs
Q : What triggered the sell-off to ~$112K?
A : A swift, leverage-driven move that cascaded into forced liquidations across venues.
Q : How large was the wipeout?
A : About $1.7B in 24-hour liquidations, mostly long positions—the year’s largest.
Q : Why does the Fed matter for Bitcoin this week?
A : Powell speaks Tuesday and the PCE inflation report is Friday; both can shift rate expectations and risk appetite.
Q : Did the Fed just cut rates?
A : Yes. The FOMC lowered the federal funds range by 25 bps to 4.00%–4.25% on Sept. 17, 2025.
Q : Are more cuts expected at the Oct. 29 meeting?
A : Futures pricing implies a high probability of additional easing, contingent on data.
Q : What is ‘pre-euphoria’ in on-chain data?
A : A CryptoQuant signal where LTH vs. STH MVRV divergence historically preceded late-cycle surges.
Q : How should I trade during volatility like the biggest Bitcoin long liquidation of 2025?
A : Reduce leverage, use hard stops, and be mindful of macro event risk (Powell/PCE). (General information, not financial advice.)