5 Reasons Crypto Liquidation Risk Could Break Records in September 2025

Jakarta, Pintu News – A surge in derivatives activity, market expectations of Fed policy, and the dominance of leveraged trading have combined to trigger the risk of massive liquidation in the cryptocurrency market. Based on data from CoinGlass and expert analysis, September 2025 could potentially be the month with the highest liquidation volume in crypto history.

1. Bitcoin Open Interest Reaches IDR3,637 Trillion, an All-Time High

According to data from CoinGlass, the total value of open interest in the crypto derivatives market reached $220 billion or around Rp3,637 trillion in September 2025. This figure reflects the increasing leverage exposure of traders.

Spikes in open interest are often an early signal of potential mass liquidation, especially when market volatility increases. This suggests that many traders are opening large positions in expectation of short-term price movements.

Market experts say that these conditions make the market highly vulnerable to shocks, even by small economic sentiments.

Also Read: Jake Claver, CEO of Digital Ascension Group’s Shocking Prediction: XRP Will Break $25!

2. Bitcoin Derivatives Trading Volume 10 Times Bigger than Spot

From the same source, CoinGlass notes that Bitcoin (BTC) trading volume in the form of perpetual futures is eight to ten times that of spot volume, meaning traders are speculating more than actually buying the asset.

Derivatives trading magnifies the effects of any price fluctuations, as leveraged positions can quickly wipe out capital in a short period of time. When the price moves against the direction of the position, automatic liquidation occurs.

This dominance of derivatives suggests that the market is filled with short-term speculation rather than long-term investment, which adds to systemic instability.

3. High Volatility Due to Fed Policy Uncertainty

Although many market participants feel they have already priced in the interest rate decision from the Federal Reserve, analysts like Crypto Bully on the X platform state that the FOMC outcome does not guarantee the direction of the price trend. Instead, the decision often triggers extreme volatility.

This high volatility often triggers a “liquidation cascade”, where one liquidation triggers another in quick succession. This is often exacerbated by highly leveraged positions spread across multiple platforms.

CoinGlass reports that there are significant liquidation “clusters” both above and below the current Bitcoin price, meaning price movements in either direction could trigger a wave of liquidation.

4. Potential Billion Rupiah Losses if BTC Falls or Rises Sharply

CoinGlass’ liquidation map shows that if Bitcoin’s price drops to $104,500, the potential liquidation of long positions could reach $10 billion.

Conversely, if the price of BTC rises above $124,000, short positions will suffer losses of up to $5.5 billion. This illustrates the tension on both sides of the market.

Traders are now in a catch-22 situation, as both long and short positions carry a high risk of liquidation.

5. Altcoins are also not spared from the threat of liquidation

BeInCrypto also notes that several altcoins, including Ethereum (ETH) and Ripple (XRP), face similar liquidation risks. High leveraged positions and market expectations of altcoins are the main contributors.

Altcoins tend to be more volatile than Bitcoin, so the effects of liquidation can be more damaging. Even a slight price correction can trigger a series of large position liquidations.

Luckshury analysts warn that derivatives traders are essentially “fighting” against the exchange. Therefore, risk management and liquidation zone mapping are essential to minimize losses.

Also Read: Maartunn Analyst Says December 2024 Crypto Market Pattern Repeats, What Does It Mean?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Nhat Hoang / BeInCrypto. 3 Reasons Crypto Traders Face Major Liquidation Risk This September. Accessed September 18, 2025