PANews reported on December 25th that, according to CoinGlass's annual report, the total forced liquidation of both long and short positions in the cryptocurrencyPANews reported on December 25th that, according to CoinGlass's annual report, the total forced liquidation of both long and short positions in the cryptocurrency

CoinGlass: Crypto market liquidation volume to reach $150 billion in 2025, averaging approximately $400-500 million per day.

2025/12/25 20:23

PANews reported on December 25th that, according to CoinGlass's annual report, the total forced liquidation of both long and short positions in the cryptocurrency derivatives market is expected to reach approximately $150 billion in 2025, averaging about $400-500 million per day. The concentrated deleveraging event from October 10th to 11th was particularly noteworthy, with over $19 billion in liquidations that day, accounting for 85%-90% of the total. This event was triggered by the US announcement of additional tariffs on Chinese imports, leading to market risk aversion, coupled with the high leverage of BTC, resulting in a surge in pressure on the liquidation chain.

The report points out that deviations in the execution of automatic reduction of positions (ADL) in the liquidation mechanism exacerbated market volatility, with some long-tail assets experiencing declines of over 80%, and those with low liquidity being particularly severely affected. Although it did not trigger systemic defaults, the fragility of the liquidation system exposed deficiencies in tail risk management. Analysts predict that improvements to the liquidation mechanism and the prevention of systemic risk will be key issues in the market in 2026.

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