CoinGlass's annual report forecasts that the cryptocurrency derivatives market will experience forced liquidations totaling approximately $150 billion in 2025, with daily averages of $400-500 million. A significant deleveraging event occurred from October 10th to 11th, with over $19 billion in liquidations, driven by U.S. tariff announcements on Chinese imports and high BTC leverage. This event highlighted weaknesses in the liquidation system, particularly in managing tail risks, as some assets saw declines over 80%. Analysts emphasize the need for improved liquidation mechanisms to prevent systemic risks in 2026.
Crypto Market Liquidations to Hit $150 Billion in 2025, CoinGlass Reports
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