Crypto Derivatives Market Suffers $900 Million Liquidation as Bitcoin & Ethereum Decline

A significant amount of cryptocurrency derivatives, totaling $900 million in losses, was liquidated across markets on August 26, 2025. This drop primarily affected traders with over-leverage positions, particularly focusing on Bitcoin and Ethereum. The sudden downturn triggered a sell-off of both cryptocurrencies, fueled by high leverage trading activities. Analysts believe this volatility points to vulnerabilities in the current market dynamics, especially for those using excessive leverage.