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- Crypto’s biggest crashes often stem from global economic or political factors and rarely from internal failures.
- 2021 and 2025 saw the biggest Liquidation in history, wiping out billions of dollars.
On October 10, 2025, the market witnessed the largest liquidation event in crypto history, as more than $19.16 billion in leveraged positions were wiped out within hours. This was after U.S. President Donald Trump announced a 100% tariff on Chinese imports. Although this is not the first time this year for the president to declare economic war with China, it’s the first time the crypto market has felt a major impact
Bitcoin had just hit an all-time high above $125,000. On the news, BTC plummeted to below $102,000, while altcoins had the most impact before a partial recovery, with up to a 90% drop.
According to CoinGlass data, over 1.6 million traders were liquidated. Over $670 billion in market value was liquidated, making it the single largest wipeout ever recorded in crypto history.
2021 was a tough year for the Market with several instances of major liquidations. The second-largest liquidation on April 18, 2021, wiped out about $9.94B across the crypto market. Since then, there has not been a major wipeout.
1. October 10, 2025: U.S. Tariff Hike on China, $19.16 Billion Liquidated
The largest liquidation event in crypto history began not in a blockchain, but in Washington. When Donald Trump announced 100% tariffs on Chinese imports, global markets shifted to risk-off mode. Within hours, over $19 billion in crypto leverage was wiped.
Bitcoin plunged below $102,000, Ethereum, Solana, XRP, and other major coins were also heavily affected, recording double-digit percentage losses in minutes.
By the next day, partial recovery followed, and although Bitcoin did not drop below $100k, BTC is struggling to maintain above $110k.
2. April 18, 2021: AML Crackdown Rumor and Mining Halt, $9.94 Billion Liquidated
Although in a totally different way, China was somehow involved with the 2021 second-largest Liquidation. In April 2021, rumors of an anti-money-laundering (AML) crackdown coincided with reports of temporary mining shutdowns in China. Bitcoin fell 15%, and Ethereum plunged over 20%.
The $9.9 billion liquidation exposed crypto dependency on Asian mining infrastructure at the time.
Also Read: New York Considers Excise Tax on Crypto Mining Operations
3. May 19, 2021: Tesla’s Reversal and Regulatory Tightening: $9.01 Billion Liquidation
Also in 2021, barely a month after the AML panic, Tesla reversed its decision to accept Bitcoin payments, citing environmental concerns. This was a follow-up to a previous announcement that month to halt bitcoin payments. The move sparked one of the sharpest corrections in crypto’s modern history.
Here, Bitcoin crashed 30% to $30,000, Ethereum dropped 40%, and over $9 billion in leveraged positions were wiped out. To some, it seemed like the end of the road for crypto. It was the third blow for Bitcoin in the same year, and the losses were massive
4. February 22, 2021: Overheated Rally Correction- $4.10 Billion Liquidation
Just before this day, BTC had a good run. After months of relentless gains, Bitcoin’s run toward $58,000 hit a wall. Excessive retail leverage, thin weekend liquidity, and profit-taking converged to trigger a $4.1 billion liquidation in a single session. Bitcoin and Ethereum both plunged more than 15%.
This was the market’s first major reminder of unchecked leverage. It was one of the few more that would follow that year, where more liquidation followed faster than anyone could have imagined.
5. September 7, 2021: El Salvador Bitcoin Law Launch Dump- $3.65 Billion Liquidated
What was meant to be a historic day turned into a global sell-off. September 2021 was the official rollout of El Salvador’s Bitcoin law. The launch day turned chaotic after the government’s official Chivo wallet app suffered multiple outages. Exchanges faced liquidity bottlenecks, and confusion spread among local users trying to convert or spend BTC.
Related: El Salvador Sets Up Bitcoin Banks – A Global First in Cryptocurrency Adoption
At the same time, global traders saw the event as an ideal “sell-the-news” opportunity. Within hours, Bitcoin plunged nearly 10% to $46,000, triggering over $3.65 billion in leveraged long liquidations. Other altcoins also dropped.
6. September 22, 2025: Over-Leveraged Longs Flushed- $3.62 Billion
October was not the only time crypto saw massive liquidation in 2025. Fresh from a summer rally, traders were caught off guard when the Federal Reserve hinted at tighter monetary policy.
Bitcoin fell 8%, triggering $3.62 billion in long liquidations. For the first time, crypto mirrored traditional markets almost tick-for-tick.
7. February 23, 2021: Yellen’s Anti-Bitcoin Remarks- $3.15 Billion Liquidated
On the 23rd, a single statement from U.S. Treasury Secretary Janet Yellen was enough to liquidate over 3 billion. Yellen called Bitcoin “inefficient and speculative,” and it did not help that the previous day the market had seen a $4.10 billion liquidation. The market was fragile, and her remarks didn’t just add salt to the wound; they tore it wide open.
Bitcoin slipped 15% to $50,000, and $3.15 billion in positions were liquidated.
8. April 23, 2021: U.S. Capital Gains Tax Hike Plan- $2.92 Billion
On this day, reports that the White House was planning to raise capital gains taxes for wealthy investors sparked a sell-off that cleared nearly $3 billion in crypto leverage.
Bitcoin dropped 8% to $52,000. From this point, crypto traders began tracking Treasury decisions and tax debates as closely as Federal Reserve announcements. As always, Bitcoin also dragged the rest of the market down.
9. April 16, 2021 — Turkey’s Crypto-Payment Ban- $2.77 Billion
In April 2021, just over a week before the U.S. Capital Gains Tax hike plan, Turkey banned cryptocurrency payments, citing inflation and currency instability. The news was not gentle to the crypto market. Investors panicked, Bitcoin dropped 7%, and $2.77 billion in positions were wiped out.
10. May 13, 2021: Tesla Halts Bitcoin Payments- $2.47 Billion
Just weeks after announcing it would accept Bitcoin as a mode of payment, Tesla suspended BTC payments due to environmental concerns over mining’s carbon footprint.
As a result, Bitcoin fell 12% to $49,000, triggering $2.47 billion in liquidations. Around that time, the industry saw the need for sustainable mining, with renewable energy adoption rising sharply in the months that followed.
What Next for Bitcoin?
The more Bitcoin price increases in value, the more in terms of dolar value it is vulnerable to liquidation. October may have been the biggest liquidation, but the price value ratio is not. A fraction of bitcoin now is more valuable than it was back in 2021.
Right now, Bitcoin is holding above $100k, and in terms of value, it is still 58% as of October 19th compared to a year ago, despite the recent crash.
