 
 
The cryptocurrency market endured one of its sharpest shakeouts of the year this week, with over $1.8 billion in leveraged positions wiped out in a single day.
Despite this turbulence, the number of crypto millionaires has climbed dramatically, as long-term wealth accumulation grows even amid short-term chaos.
According to CoinGlass, more than 370,000 traders were liquidated on Monday as Bitcoin fell below $112,000 and Ethereum slipped under $4,150, their steepest pullbacks since mid-August.
The sell-off, which erased over $150 billion from the market’s capitalization, was primarily driven by overextended leverage. Ether and Bitcoin long positions bore the brunt, with Ether liquidations topping half a billion dollars, more than twice that of Bitcoin.
Analysts were quick to stress that this pattern is not new. Raoul Pal, founder of Real Vision, described the move as a familiar cycle: traders pile in heavily ahead of an anticipated breakout, the first attempt falters, leverage collapses, and only then does the real rally emerge.
 
Others pointed to excessive altcoin leverage as the main trigger, noting how cascading liquidations cleared out weaker hands.
Long-term wealth surge contrasts with short-term pain
Even as traders nursed losses, new data from Henley & Partners revealed that crypto wealth at the higher end has soared.
According to the Crypto Wealth Report 2025, 241,700 investors now hold at least $1 million in digital assets, representing a 40% increase in just 12 months. That figure includes 450 centi-millionaires with over $100 million, and 36 billionaires. That said, Bitcoin accounts for around 60% of this pool.
Many high-net-worth individuals are pursuing residency or citizenship programs in hubs such as Malta, Portugal, and the UAE, where regulations are clearer and digital assets integrate more smoothly with traditional finance.
Meanwhile, analysts expect Bitcoin to retest lower support zones, with some eyeing $103,000 as a possible floor. Fortunately, long-term analysis suggests that market drawdowns are a chapter in a larger story.
Source: https://zycrypto.com/crypto-millionaires-surge-by-40-despite-160-billion-market-crush-in-september/
