Top 10 Liquidation Events in Crypto History

While the crypto market is very volatile, some events stand out because of their size and effect. Leveraged trades increase both gains and losses, which can trigger big sell-offs.

Coinglass reports that the ten largest crypto liquidation events in history have wiped out tens of billions of dollars. Each case shows how leverage, market psychology, and outside factors can combine to create sudden losses.

What Are Crypto Liquidations?

Crypto liquidation happens when a trading position is closed automatically because the trader has lost more than the required margin. Many traders borrow money from exchanges to increase their position size, a practice called leverage. For example, 10× leverage lets a $1,000 investment control $10,000 in crypto. This can increase profits but also makes losses bigger.

Exchanges trigger liquidations to recover borrowed funds and reduce exposure. If many positions close at once, it can create heavy selling and push prices lower. Thus, liquidations are both a cause and a sign of high market volatility.

Understanding liquidations helps traders see how leverage, news, and global events can lead to sudden losses. Here are the 10 biggest crypto liquidations in history:

$19.16B on October 10, 2025

On October 10, 2025, President Donald Trump’s administration put a 100% tariff on all Chinese imports, escalating the trade dispute with China. The move came after China said it would restrict exports of rare earth minerals, important for tech and defense.

Investors became concerned about supply chain issues and rising costs for U.S. companies, and the entire market, including stocks, dropped after the tariffs were introduced. Cryptocurrency also plunged along with traditional assets.

The news caused a huge market drop. Bitcoin fell over 17% from $123,300 to $101,500. Ethereum and Solana fell 12% and 14%. It led to $19.16 billion in liquidations.

$9.94B on April 18, 2021

On April 18, 2021, a big sell-off was caused by unconfirmed reports of a U.S. anti-money-laundering crackdown and temporary mining disruptions in China. BTC lost 15%, falling from $62,000 to $56,000, and ETH fell 20%, with the total of $9.94 billion in liquidations.

$9.01B on May 19, 2021

A wave of corporate reversals and regulatory updates led to $9.01 billion in liquidations. Tesla CEO Elon Musk suspended BTC payments for vehicles, citing environmental issues. At the same time, China strengthened restrictions on crypto financial services, and U.S. authorities indicated a move toward tighter oversight.

These combined pressures caused Bitcoin to decline 30%, from $45,000 to $30,000 and ETH to drop 40%.

$4.10B on February 22, 2021

Bitcoin’s quick advance from $48,000 to $58,000 in six days triggered a sharp correction back to $48,900, wiping out $4.1 billion in long positions. Retail investors had powered the initial rally, but positions using leverage were wiped out swiftly after market’s correction.

$3.65B on September 7, 2021

El Salvador made BTC legal tender in September 2021. Issues with the Chivo wallet created confusion and resulted in $3.65 billion in liquidations. BTC dropped 10%, from $52,000 to $46,000, with other leading cryptocurrencies also losing value.

$3.62B on September 22, 2025

The U.S. Federal Reserve’s tightening measures triggered $3.62 billion in liquidations as highly leveraged positions failed. Bitcoin fell 8%, from $115,000 to $112,000, dragging other assets down as well. This event marks one of the most synchronized declines across both crypto and traditional markets in recent years.

$3.15B on February 23, 2021

U.S. Treasury Secretary Janet Yellen called BTC “inefficient” and “highly speculative,” causing $3.15 billion in liquidations. BTC fell 15%, from $57,000 to $45,000, and ETH and other altcoins dropped too.

$2.92B on April 23, 2021

Announcements of potential U.S. capital gains tax hikes for top earners led to $2.92 billion in liquidations. Bitcoin dropped 8%, from $55,000 to $47,000 as leveraged positions were unwound.

$2.77B on April 16, 2021

To fight financial instability, Turkey stopped crypto payments, triggering $2.77 billion in liquidations. BTC slid 7%, falling from $64,000 to roughly $60,000.Most of the major coins also saw notable losses.

$2.47B on May 13, 2021

Tesla’s pause on BTC payments triggered $2.47 billion in liquidations, dropping BTC by 12%, from $57,000 to $49,000. Musk pointed to environmental issues but continues to back crypto. The move raised debate on eco-friendly blockchain and market influence.

What to Learn from Major Liquidations?

As history shows, crypto can drop sharply on any regulatory update or market shock, and these moves often happen without warning. If you trade with margin, use it carefully and avoid extreme leverage like x100 unless you are absolutely confident in your position. Even then, only trade with funds you can afford to lose.