The $150 billion in total cryptocurrency liquidations seems like a catastrophe at first. It is a significant figure, emotionally charged and simple to interpret as evidence that the market had a terrible year in 2025. However, a closer look at the data reveals a much more complex picture that is, to be honest, less dramatic than it might seem.
https://www.tradingview.com/news/u_today:d9fbfc04c094b:0-enormous-150-000-000-000-crypto-liquidations-in-2025-is-it-worst-year-in-crypto/
Posted by Practical-Solutions1
3 Comments
It was one of the best years ever; for the exchanges.
The worst day in crypto so far.
“Worst year” depends on what you’re measuring.
A huge liquidation figure mostly measures how much forced-selling the system triggered, not some intrinsic market sickness. Liquidations are a specific design choice: when prices move, positions get forcibly sold into the market. That can create feedback loops (forced sells push price, which triggers more forced sells). It’s mechanically pro-cyclical.
The key point is not “people shouldn’t use leverage.” Leverage exists in every market and it can be useful. The issue is how leverage is enforced. If the enforcement mechanism is mass liquidation into thin liquidity, the cascade becomes the feature, and it naturally benefits the venues running the rails.
These are design choices not rules of crypto.
If you are tired of this “metric” and don’t believe the status quo should be liquidation finance I want to talk.