The crypto market endured one of its most brutal weeks in 2025, with total capitalization falling from $4.12 trillion to $3.88 trillion — a $240 billion wipeout — as major cryptocurrencies including Bitcoin, Ethereum, and XRP suffered sharp declines. According to Bitcoin.com News, leveraged traders were hit especially hard: over $6 billion in positions were liquidated across the week, with the single largest daily liquidation event occurring on September 22, when approximately $1.7 billion was flushed out.
Bitcoin Leads the Downtrend
Bitcoin (BTC) fell from around $115,700 on September 20 to $109,500 by 1:30 PM ET on September 27, recording a weekly loss of 5.5%. The pullback was driven by profit-taking and macroeconomic uncertainty, temporarily pushing BTC toward the psychologically significant $100,000 mark. While Bitcoin remains relatively resilient in longer-term trends, its short-term trajectory appears cautious as traders assess the impact of elevated interest rates and global risk aversion.
Ethereum Breaks Below $4,000
Ethereum (ETH) began the week above $4,400 but closed at $3,992, down 11% — its first dip below $4,000 since August 8. Bearish sentiment overwhelmed the market from Monday onward, and even news that Bitmine Immersion had accumulated additional ETH — typically a bullish signal — failed to stem selling pressure. ETH touched an intraday low of $3,846 on September 25, its weakest level in weeks, despite continued institutional interest.
XRP Struggles; USDT Rises in Market Cap Ranking
XRP, which hit an all-time high of $3.66 in July, fell nearly 7% to $2.79 by the end of the week. While some analysts point to technical indicators suggesting a potential rebound above its previous ATH, the current price action remains cautious. The decline helped stablecoin USDT solidify its position as the third-largest digital asset by market capitalization, reflecting a capital flight from riskier assets.
Altcoin Carnage and Exceptions
BNB declined 5.3% to close at $968 after reaching a high of $1,079 on September 21. Many altcoins suffered double-digit losses: SOL fell 16%, DOGE dropped 14%, ADA declined 12.8%, and HYPE plunged 18.1%. However, a few tokens bucked the trend — notably ASTER and MYX, which surged 59.4% and 32.4% respectively — showing that some speculative capital still sought out niche opportunities even amid the broader rout.
Historic Liquidation Wave
The week was catastrophic for leveraged traders. According to Coinglass, over $6 billion in leveraged positions were liquidated, with the vast majority being long contracts. September 22 alone saw $1.7 billion in liquidations — the largest single-day event in 2025 — followed by another $1 billion three days later. The scale of liquidations rivaled that of the LUNA collapse in 2022, reinforcing the dangers of excessive leverage in volatile markets. As of press time, market sentiment remains fragile, and the ability of Bitcoin and Ethereum to hold key support levels will determine whether the correction deepens into a prolonged bear market.