The cryptocurrency market endured a brutal week, with total market capitalization dropping from $4.12 trillion to $3.88 trillion—a loss of over $240 billion. Bitcoin (BTC), Ethereum (ETH), and XRP led the decline, while over $6 billion in leveraged positions were wiped out, marking one of the most severe deleveraging events of 2025.
Bitcoin Leads the Downturn
Bitcoin slipped from approximately $115,700 on September 20 to $109,500 by September 27, a weekly loss of 5.5%. This made BTC one of the worst-performing major cryptocurrencies during the period. Ethereum, which started the week above $4,400, closed 11% lower at $3,992—its first drop below $4,000 since August 8. Even news of Bitmine Immersion acquiring additional ETH, typically a bullish signal, failed to stem the selling pressure. The bearish momentum was so strong that ETH touched an intraday low of $3,846 on September 25, its weakest level in weeks, despite evident institutional interest.
XRP, which hit an all-time high of $3.66 in July, struggled to regain momentum, falling nearly 7% to trade just below $2.79 by week's end. While some analysts and technical indicators suggest a potential rebound that could push XRP beyond its record high, the recent price action paints a more cautious picture. Meanwhile, XRP's decline helped stablecoin USDT consolidate its position as the third-largest digital asset by market cap.
Altcoin Losses and Exceptions
BNB, after reaching an all-time high of $1,079 on September 21, mirrored the broader market, declining 5.3% to close at $968. Several altcoins suffered double-digit losses, including SOL (–16%), DOGE (–14%), ADA (–12.8%), and HYPE (–18.1%). However, a few tokens bucked the trend: ASTER surged 59.4% and MYX gained 32.4%.
The week was particularly brutal for leveraged traders, with billions of dollars in positions wiped out. According to Bitcoink.com News, September 22 alone saw about $1.7 billion in both long and short positions liquidated—the largest single-day liquidation event of 2025. Three days later, another $1 billion in contracts were erased. Coinglass data shows that over $6 billion in leveraged positions were liquidated throughout the week, with the majority of losses coming from long contracts.
Market analysts attribute the crash to a combination of macro factors, profit-taking after recent highs, and technical corrections. Despite ongoing institutional inflows, short-term bearish sentiment dominated, triggering concentrated long-position liquidations that accelerated the decline. The coming week will be crucial in determining whether the market can stabilize, and investors are advised to closely manage risk.