Bitcoin, Ethereum, and Major Cryptos Crash in September 2025: Over 400K Traders Liquidated

• What Triggered the September 2025 Crypto Crash?
• How Severe Were the Liquidations?
• Historical Parallels: How Does This Compare to Past Crashes?
• What’s Next for the Market?
• FAQ: Your Crypto Crash Questions Answered

The cryptocurrency market faced a brutal sell-off on September 23, 2025, with Bitcoin (BTC) and Ethereum (ETH) leading a steep decline that liquidated over 400,000 leveraged traders. Data from CoinMarketCap shows BTC briefly dipping below $40,000—a 3-month low—while altcoins bled even harder. Analysts point to macroeconomic jitters and cascading liquidations as key drivers. Below, we break down the market mechanics, historical context, and what this means for crypto investors.

What Triggered the September 2025 Crypto Crash?

Like a domino effect, the sell-off began when Bitcoin broke below its critical $42,000 support level. Within hours, ethereum followed suit, dropping 12% to $2,150. "This wasn’t just a correction—it was a margin call massacre," noted BTCC analyst David Lin. Data from TradingView reveals over $1.2 billion in long positions got wiped out, with Binance, BTCC, and OKX seeing the highest liquidation volumes.

How Severe Were the Liquidations?

Per CoinGlass data, the 24-hour liquidation count hit 402,189 traders—the highest since June 2025. Most casualties were overleveraged retail traders betting on a rebound. Memecoins like PEPE and SHIB got hammered (-25% to -40%), while even "safe haven" assets like Toncoin (TON) fell 18%. The chart below shows the carnage:

Historical Parallels: How Does This Compare to Past Crashes?

While dramatic, the September 2025 slump pales next to crypto’s darkest days. The May 2021 Terra collapse saw $60B vanish in a week, and the FTX 2022 debacle erased 50% of BTC’s value. "This is more like 2023’s banking crisis sell-off—sharp but recoverable," argues Lin. Still, with BTC’s volatility index spiking to 85, even veterans are nervous.

What’s Next for the Market?

Short-term, traders should watch the $38,500 BTC support level like hawks. If it breaks, we could revisit January 2025 lows. Macro factors matter too: the Fed’s September rate decision (due Sept 28) might fuel more pain if hawkish. "Crypto’s still tied to traditional markets, whether we like it or not," admits a BTCC desk trader.