Bitcoin fell sharply to $112K on September 22, 2025, amid $1.7 billion in liquidations and macroeconomic concerns related to the Federal Reserve’s policy.
The downturn highlights vulnerability from institutional profit-taking and macro pressures, leading to a significant market cap loss, impacting traders and crypto assets heavily.
Bitcoin Price Plummets Amid $1.7 Billion Liquidations
The crypto market witnessed a severe downturn on September 22, 2025, with Bitcoin’s price dipping sharply due to $1.7 billion in liquidations. This major market event was linked to profit-taking by institutional players and macroeconomic concerns.
Institutional entities like Spot Bitcoin ETF providers played a significant role in this downturn. Their halting inflows and apparent profit-taking contributed to the rapid market decline during the day.
$77 Billion Erosion in Market Value Hits Traders
The market’s value dropped by $77 billion in a single session, impacting Bitcoin and Ethereum severely. Over 400,000 traders were liquidated amid heightened volatility, predominantly in leveraged positions, affecting investor confidence.
Analyses suggest this event may lead to further regulatory scrutiny and increased market caution. Historical patterns indicate such incidents can also trigger recovery once liquidations subside, supported by past stabilization after sharp drawdowns.
Experts Cite 2017 and 2021 as Precedents for Stability
Similar sell-offs in 2017 and 2021 resulted from large options expiries and macroeconomic shocks. These events typically stabilize once forced liquidations diminish, hinting at potential market corrections ahead.
Experts from Kanalcoin emphasize that systemic leverage and macro panic are central drivers of current volatility. Historical data suggest such downturns often precede a period of market stabilization and strategic adjustments. According to institutional insights, “significant profit-taking by institutions amidst a backdrop of macroeconomic uncertainty” plays a pivotal role in these market shifts.
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