Crypto Carnage: $1B Liquidations Wreck Markets in Historic Hourly Bloodbath

Crypto markets just got steamrolled—$1 billion in liquidations hit traders in sixty brutal minutes.

WHY THE SELLOFF?

Leverage got obliterated as cascading liquidations triggered stop-losses across major exchanges. No single catalyst—just pure, unadulterated market mechanics doing what they do best: separating weak hands from their capital.

THE AFTERMATH

Entire portfolios got rekt while traditional finance skeptics nod knowingly—another day, another billion evaporated in crypto’s beautiful chaos. Remember: corrections shake out speculators, leaving stronger foundations behind. Always has, always will.

Markets cleanse. Builders build. And Wall Street still doesn’t get it.

Forced liquidations: Why is the crypto market crashing right now?

This time, the mass crypto liquidations were caused by rising interest rates. Expectations of tight monetary policy have a tendency to hurt alternative assets like crypto. When yields on safer assets like bonds and savings go up, crypto becomes a less attractive asset for investors to inject their capital.

After the Fed cut interest rates earlier last week, the rally was short lived as concerns over global inflation and recent economic indicators have left traders more weary about trading in alternative, more risky assets. Just a few days ago, the Gulf central banks cut key interest rates, following suit after the Federal Reserve cut U.S. interest rates by 25 basis points.

On Sept. 22, Bitcoin dropped below the $115,000 threshold. The largest cryptocurrency by market cap dropped from around $114,400 to nearly $112,000 within minutes, before stabilizing near $112,900.

The steep decline coincided with one of the largest long liquidation events of this cycle, where more than $1 billion in Leveraged long positions were wiped out within just one hour. This forced selling created a cascade effect, accelerating Bitcoin’s decline as margin calls and liquidations triggered more automatic sell orders.

The Relative Strength Index fell into oversold territory during the big flush, briefly plunging below 20, highlighting the speed and severity of the moves made by traders. Such DEEP oversold conditions often follow liquidation-driven crashes, as price action becomes less about organic selling and more about forced exits.