Bitget Weathers $1.7 Billion Liquidation Storm as Market Recovers

The cryptocurrency market experienced one of the most significant liquidation events in recent history during September 24-25, 2025, with leveraged positions worth approximately $1.7 billion being wiped out in a dramatic market downturn. This liquidation carnage triggered substantial price declines across major digital assets, with Ethereum plummeting 9% below the critical $4,000 support level and Bitcoin dropping 3% to $111,998 before staging a partial recovery. The scale of the sell-off was massive, with Bitget reporting over 407,000 traders caught in the market turmoil, highlighting the widespread impact across the cryptocurrency ecosystem. The extreme volatility was primarily driven by excessive leverage in the market, with open interest reaching an astonishing $1.04 trillion prior to the correction. This high leverage environment created a perfect storm for cascading liquidations as price movements triggered margin calls and forced selling. The event serves as a stark reminder of the risks associated with leveraged trading in cryptocurrency markets, particularly during periods of heightened volatility. Despite the sharp downturn, the market demonstrated resilience with Bitcoin and Ethereum both showing recovery signs after the initial plunge. Bitget's transparent reporting of the affected traders provides valuable insight into the human impact of such market events, emphasizing the importance of risk management and proper position sizing for traders operating in volatile digital asset markets. The incident also underscores the maturing nature of cryptocurrency markets, where even significant liquidation events are now being absorbed with relative stability compared to earlier market cycles.

Liquidation Carnage Sweeps Over $1.7 Billion, Causing a Plunge in BTC and ETH

The cryptocurrency market faced a brutal liquidation storm as leveraged positions worth $1.7 billion were wiped out between September 24–25. Ethereum plunged 9% below $4,000, while Bitcoin dropped 3% to $111,998 before a partial rebound. Bitget reported over 407,000 traders caught in the sell-off.

High leverage exacerbated the downturn, with open interest hitting $1.04 trillion. Bitcoin's technical outlook turned bearish as it broke below key support levels, including the 23.6% Fibonacci retracement at $115,400. MACD and RSI indicators signal lingering downside risk.

XRP Institutional Adoption Gains Momentum After SEC Clarity

The U.S. cryptocurrency market is undergoing a significant transformation under the TRUMP administration, with policies emphasizing innovation, regulatory clarity, and global competitiveness. The administration's goal is to establish the United States as a leading hub for digital assets, creating a favorable environment for tokens like XRP.

This shift marks a departure from previous enforcement-heavy approaches. The new framework encourages market participation and innovation, reflecting a more pro-crypto regulatory stance.

The resolution of the SEC vs. Ripple lawsuit in August 2025, where both parties dropped their appeals, affirmed a 2023 court ruling that XRP is not a security in secondary markets. This legal clarity has removed a major barrier to institutional adoption.

Financial institutions are now integrating XRP into their portfolios without fear of legal repercussions. Bitget data shows increased accumulation by major firms, leveraging XRP's utility in cross-border payments.