The Monday, 22nd of September 2025 collapse of the crypto market erased over $1.5 billion in bear positions. Market leader tokens Bitcoin and Ethereum led the decline, which saw spontaneous selling throughout the markets. The drop was so steep that it left 387,397 traders losing their position in less than 24 hours.
Bitcoin and Ethereum Lead the Losses
Bitcoin (BTC) dropped close to 3%, below $113,000 at the bottom. Ethereum (ETH) experienced the biggest drop among the leading cryptocurrencies, dropping close to 9%. Much of that lost value was through Ethereum position unwinds.
This price fall following recent highs, a common pullback in momentum. Ethereum and Bitcoin had both been showing strength during the first half of this month but were held back by technical weakness and a change in investor sentiment.
Altcoins Suffer Double-Digit Losses
Altcoins performed even worse. Solana, Cardano, XRP, and Dogecoin dropped between 5% to 11%. These riskier coins were pulled down by a downfall in investor confidence.
Total market capitalization of cryptocurrencies fell to below $4 trillion during the crash. The drop is not just because of falling prices but also because of falling participation in the market. Volumes went sky-high as panic selling made way to hysteria, particularly in the derivative market.
Why Did the Crypto Market Crash?
There are explanations for the crash. First, investor sentiment was rattled following diminishing inflows into large-cap cryptocurrencies. Bitcoin and Ethereum treasury holdings remained strong, showing restraint on the part of institutional investors.
Second, macroeconomic concerns, most notably elevated interest rates and central bank hawkish forecasts, have compressed risk appetite. Risky assets, such as crypto, were shed by traders in response.
Lastly, Bitcoin on-chain metrics showed profit exhaustion. Once longs began losing positions, selling pressure was built up and over-leveraged longs had to be squeezed out.
What’s Next for Crypto Traders?
Bitcoin will probably be supported at $110,000 or $112,000. In the event that those levels are breached, expect further losses. Altcoins will probably keep getting squeezed in the near-term, especially those with terrible fundamentals.
Even after the crash, experts consider this kind of shakeout to be typical for the bull cycle. The liquidation phase, nasty as it is, could clean out excessive leverage and set the market right again. The traders currently will look for consolidation and potential signals of turnabout in major assets.
