Over $1 billion leverage positions have been wiped out this week as Bitcoin slumped to $109,000, setting the stage for one of 2025’s most precarious periods.
With the $22 billion crypto options agreement expired on Friday and a major US inflation report on the same day, traders say Bitcoin is at a key intersection.
On Thursday, Bitcoin (BTC) slid to 108.7K, the weakest level in nearly a month, slightly above the $109,000 threshold.
Ethereum (ETH) rose to another $3,800 in 24 hours, extending its loss to 14.3% from its record high last month.
The decline caused widespread leveraged flash. Coinglas data shows that more than $975 million liquidation has occurred, leading $247 million in Wiped ETH Longs and BTC.
Crypto stocks reflect a slump. Bitcoin’s biggest corporate owner, MicroStrategy (MSTR), erased its profits in 2025, down 10% from its five-month low. We slid 7-8% along with shares in Miners Marathon Digital (Mara) and Riot Platforms (Riot) and Ether Treasury Firms Bitmine (BMNR) and Sharplink Gaming (SBET).
The sale is writing the market as the $22.3 billion crypto options agreement expired on Friday. According to Deribit, a crypto option exchange, this is one of the biggest quarterend expirations.
Over $17 billion is tied to Bitcoin, with dealer positioning clustered between around $108,000 and $109,000. A low critical break could force hedge flows that accelerate losses to $96,000.
Macro risk adds another layer. The US Core PCE Report, a major Federal Reserve inflation gauge, is expected to show slight cooling, but the opposite surprise could strengthen the dollar and deepen selling across risky assets.
Still, not all signals refer to bearish. Meanwhile, crypto traders urge investors to zoom out to a higher time frame. This remains “clearly bullish,” describing the current pullback as a normal, healthy modification in a broader context.
According to @crediblecrypto, the decline will need to go beyond the $98,000 low (a pattern known as the “running flat”) or be immersed in something called an “expanded flat” for a short time. He said that in both scenarios the structure of the higher time frame remains intact.
Why is this important?
Forced liquidation, expiration dates of recording options, and convergence of critical macro data threaten to break Bitcoin’s critical support and could set the crypto market tone in the fourth quarter.
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People ask:
Bitcoin fell after a sudden sale at Crypto Markets caused a liquidation of more than $975 million.
If the leveraged trader is unable to meet the margin requirements, a liquidation occurs. The exchange will automatically close the position. This often amplifies price fluctuations.
The option expiration date refers to a contract that reaches the settlement date. A significant expiration date can increase volatility as traders and dealers balance their positions.
The Core PCE Inflation Report affects Federal Reserve policies. A more heated reading could boost dollars and pressure risk assets, including Bitcoin.
yes. Some analysts see it as a healthy fix amid an unharmed bullish trend, hoping prices will rise in the second half of 2025.