$12B Crypto Liquidation — Did Algorithmic Bots Pull the Plug?

A wave of automated liquidations swept through Bitcoin and altcoin markets, triggering one of the largest single-day deleveraging events in history — over $12 billion liquidated in under 24 hours.

The global crypto market faced unprecedented volatility on Friday as automated systems triggered a cascading liquidation event. According to data from Coinglass and Kaiko, over $12 billion in Bitcoin futures contracts were liquidated across exchanges, marking one of the sharpest deleveraging shocks of 2025.

What makes this event particularly striking is that it wasn’t institutional capitulation — it was crypto-native traders and algorithmic bots who pulled the trigger. Market analytics suggest that high-frequency trading systems detected collapsing liquidity walls and automatically closed leveraged long positions, accelerating the fall.

“Algorithms don’t panic — they just execute,” commented one derivatives analyst on X (formerly Twitter). The event caused several exchanges, including Binance and OKX, to temporarily widen spreads to handle the order overflow.

Still, some experts see this as a healthy market flush, purging excessive leverage and creating a cleaner base for future rallies. Historical data shows similar wipes in 2021 and 2022 preceded major accumulation phases by institutional investors.

Traders now speculate whether the $112 k–$115 k zone could act as the new accumulation base for BTC before the next leg up.

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