October 2025 became infamous in the cryptocurrency world, earning the title "the most cursed month in crypto," after a 25x leveraged
Ethereum
long position was wiped out, resulting in a $15 million loss. This event highlighted the devastation as $19.37 billion in positions were liquidated, impacting 1.6 million traders. The turmoil began when Donald Trump unexpectedly announced a 100% tariff on Chinese goods, which shattered nearly ten years of bullish trends and revealed the vulnerability of high-leverage trading in such unpredictable markets, according to a
Yahoo Finance report
.
During the selloff, Ethereum (ETH) plunged 20% to below $4,000, while
Bitcoin
(BTC) tumbled 18%, dropping from its September high of $126,000 to a low of $104,782. Alternative coins including
Solana
and
Dogecoin
experienced losses between 60% and 80% as liquidity dried up. The cascade of liquidations intensified as institutions redeemed holdings and panic selling surged, shrinking the market cap by $370 billion. Data from CoinGlass showed $7 billion in losses occurred in just the first hour, resetting open interest to levels last seen at the start of 2025, as detailed by Yahoo Finance.
Despite the chaos, Ethereum's stablecoin sector reached a record high in October, with monthly transactions totaling $2.82 trillion, led by
USDC
($1.62 trillion) and
USDT
($895.5 billion). Investors sought safety in stablecoins, while decentralized exchanges (DEXs) saw trading volumes rise 23% to $613.3 billion.
Uniswap
led the DEX market with $170.9 billion in trades, showing a shift toward decentralized trading even as Ethereum's daily active addresses dropped 24%, according to a
Yahoo Finance analysis
.
By the end of October, Ethereum's price steadied near $3,700, marking a 17% decline from its monthly peak. Outflows of $600 million from centralized exchanges indicated a move toward long-term holding. Experts pointed out that the upcoming regulatory decision on the Clarity Act could influence short-term market sentiment, with its approval potentially supporting Ethereum's fundamentals, as noted in a
TradingView note
. Meanwhile, the Crypto Fear & Greed Index stayed in the "Extreme Fear" range, reflecting ongoing market anxiety.
This crash laid bare the inherent dangers of leveraged trading, as overextended positions—such as the 25x Ethereum trade—suffered the most. As November began, the crypto sector was left to reflect on a month that fundamentally changed how risk is managed in this volatile industry.
