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The crypto market is known for its extreme volatility, but some moments have caused unprecedented market crashes.
According to Coinglass, these are the ten biggest crypto liquidation events ever recorded. Each was triggered by major market shocks such as policy changes, regulatory actions, or sudden price drops, resulting in billions of dollars in trader losses.
Table of Contents
10 Largest Crypto Liquidations to Date
October 10, 2025 ($19.16 billion)
On October 10, 2025, the U.S. government, under President Donald Trump, announced an escalation in its trade war with China by imposing a new 100% tariff on all Chinese imports. The move was noted to be a direct retaliation against China’s planned export controls on rare earth minerals, materials critical to high-tech manufacturing and defense industries.
The announcement triggered a sharp market reaction, resulting in a $19.16 billion, which is around ₱1.1 trillion, liquidation event. The liquidation was driven by fears of rising costs for U.S. businesses, disrupted supply chains, and broader global economic instability.
The new tariffs were supposedly set to take effect on November 1, 2025, alongside U.S. export controls on critical software.
At the time, BTC plunged to around $101,500 on Binance’s futures market, which wiped out over ₱1 million in value in a single day. Major cryptocurrencies also tumbled, with ETH falling 12% and SOL 14%, as fears over disruptions in rare earth and semiconductor supply chains weighed heavily on digital assets.
April 18, 2021 ($9.94 billion)
The cryptocurrency market experienced a dramatic sell-off, triggered by unconfirmed reports of a looming anti-money-laundering crackdown by U.S. authorities and temporary mining disruptions in China. The dual shockwaves sent panic through investors during a period of low trading volume, culminating in a $9.94 billion (₱578 billion) liquidation event.
BTC fell 15% to $56,000, while ETH dropped 20%, with fears growing over China’s mining restrictions and their potential impact on the stability of the global blockchain network.
May 19, 2021 ($9.01 billion)
A mix of corporate reversals and regulatory crackdowns sparked a massive crypto sell-off that wiped out about $9.01 billion, which is around ₱524 billion.
The crash began when Tesla CEO Elon Musk announced the company would stop accepting BTC for car purchases due to environmental concerns, just weeks after investing $1.5 billion in the asset.
Around the same time, China reinforced its ban on crypto-related financial services, and U.S. regulators signaled stricter oversight on taxes and investor protection.
These developments caused Bitcoin to drop 30% to around $30,000 and ETH to fall 40%, marking one of the sharpest declines in crypto history.
February 22, 2021 ($4.10 billion)
BTC’s rapid ascent to $58,000 triggered a sharp correction that wiped out over $4.10 billion, which is around ₱238 billion in long positions in a single day. Retail investors had largely driven the euphoric rally in early 2021 amid global pandemic lockdowns, but the sell-off marked a turning point.
BTC and ETH both fell more than 15% before stabilizing, as leveraged trades unwound across major exchanges. The correction followed a weekend surge that saw Bitcoin hit a new all-time high of $58,640 on February 21, only to close the next day at $54,142.
September 7, 2021 ($3.65 billion)
In September 2021, the global crypto market dropped sharply after El Salvador became the first country to make BTC legal tender.
The launch faced technical problems with the government’s Chivo wallet, causing confusion and investor doubts that led to $3.65 billion, which is around ₱212 billion, in liquidations.
BTC fell about 10% to $46,000, with other major cryptocurrencies also slid. While President Nayib Bukele promoted the move as a step toward financial inclusion, critics warned it could create economic risks. The incident showed how one country’s bold crypto experiment could affect global markets, highlighting how sensitive digital assets are to policy changes and technology issues.
September 22, 2025 ($3.62 billion)
On September 22, 2025, the crypto market faced a sharp correction after U.S. Federal Reserve tightening signals triggered the collapse of over-leveraged long positions, leading to $3.62 billion, which is around ₱210 billion, in liquidations.
The sell-off, which followed a strong summer rally, became one of the most synchronized downturns between crypto and traditional finance in recent years.
BTC dropped 8%, dragging down other digital assets, as the Federal Reserve’s hawkish stance on interest rates and liquidity spooked investors. Both retail and institutional traders, heavily positioned for continued gains, were forced to unwind as margin calls accelerated losses.
February 23, 2021 ($3.15 billion)
The crypto market plunged after U.S. Treasury Secretary Janet Yellen criticized BTC as “inefficient” and “highly speculative” during a virtual conference, triggering $3.15 billion, which is around ₱183 billion, in liquidations across major exchanges.
BTC dropped 15% to around $50,000, while ETH and other altcoins also slid amid fears of tighter regulation.
Yellen’s remarks, echoed by similar warnings from regulators in Asia and Europe, signaled a coordinated move toward stricter global oversight of digital assets.
April 23, 2021 ($2.92 billion)
At that time, news of a proposed U.S. capital gains tax hike for high earners triggered an 8% drop in BTC to $52,000 and $2.92 billion, which is around ₱169 billion, in liquidations.
The plan would nearly double the tax rate for individuals earning over $1 million, prompting leveraged traders to exit positions quickly.
April 16, 2021 ($2.77 billion)
On April 16, 2021, Turkey banned cryptocurrency payments to curb financial instability amid rising inflation and a weak lira.
BTC dropped 7% to around $60,000, and $2.77 billion, which is around ₱160 billion, in crypto positions were liquidated as traders rushed to exit leveraged trades.
The country’s Central Bank cited risks like irreversible transactions and potential misuse in illegal activities. The ban halted crypto use for everyday goods and services, hitting emerging markets where digital assets were popular as fiat alternatives.
May 13, 2021 ($2.47 billion)
On this date, Tesla suspended BTC payments for its vehicles due to environmental concerns over energy-intensive mining. BTC fell 12% to $49,000, causing $2.47 billion, which is around ₱143 billion, in liquidations as traders rushed to exit leveraged positions.
Musk emphasized Tesla’s ongoing support for crypto but criticized fossil fuel use, especially coal, in mining. The announcement also sparked broader market declines and fueled discussions on greener blockchain practices, pushing the industry toward renewable energy and more sustainable consensus models.
What are Crypto Liquidations?
Crypto liquidation occurs when a trading position is automatically closed because borrowed funds, used to amplify trades through leverage, exceed losses that a trader can cover. Exchanges initiate liquidations to protect themselves from losing money lent to traders.
The process can trigger a cascade effect: as leveraged positions are forcibly closed, large sell orders flood the market, pushing prices down and prompting additional liquidations.
These events increase market volatility and put pressure on exchanges, but they also help eliminate excessive risk.
How Does Crypto Liquidation Work?
- Using Leverage
Crypto traders often borrow funds from exchanges to increase their trade size, a practice known as leverage. For example, 10× leverage lets a $1,000 investment control $10,000 worth of crypto. While this can amplify profits, it also magnifies losses. - Margin Requirement
Traders must maintain a margin, which is a minimum amount of their own money in the trade. This acts as a buffer to cover potential losses. - Triggering Liquidation
If the market moves against a trader and losses exceed their margin, the exchange automatically sells their position to recover the borrowed funds. This forced sale is called liquidation. - Cascade Effect
In volatile markets, large price drops can trigger multiple liquidations simultaneously. This floods the market with sell orders, pushing prices down further and potentially triggering additional liquidations in a chain reaction.
This article is published on BitPinas: The 10 Largest Crypto Liquidations in History
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