October 2025 Crash Shows How Leverage Can Drive Crypto Liquidations
Photo: TokenPost
Bitcoin (BTC) remains exposed to sharp liquidation waves a year after the October 2025 crash, when derivatives markets helped drive a rapid decline from about $122,000 to $105,000. Bitcoin had reached an all-time high near $126,000 shortly before the sell-off. Open interest was near historic levels as traders positioned for the continuation of the asset’s four-year cycle, but the reversal triggered roughly $19 billion in crypto liquidations. The October 2025 crash was driven mainly by derivatives markets rather than a change in on-chain demand. The crash showed how leveraged positions can dominate Bitcoin’s price movements over short periods.
Source: TokenPost
