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- Bitcoin volatility spikes, leverage unwinds, and yield talk shifts to stablecoins
Bitcoin volatility spikes, leverage unwinds, and yield talk shifts to stablecoins
BTC slid to the low 112,000s with record 2025 long liquidations. Traders debate support, while stablecoin yields face tighter rules and tax frictions.
Joe G & Money Talks
September 22, 2025 • Estimated Reading Time: 6 minutes
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What we will talk about today...
Record 2025 long wipeout sets tone for week
“Uptober” faces a test after a red start
Bitcoin signals cycle fatigue after drop to 112,000
How to approach yield bearing stablecoins in 2025
BTC tapped 112,000 as more than 1 billion dollars of longs were flushed. Traders eye 100,000 support and macro prints.
MASSIVE POLITICAL NEWS COMING FOR BITCOIN TUESDAY THAT WILL RESHAPE THE TRAJECTORY OF BITCOIN POLITICS. THIS WILL BE A DEFINING MOMENT. 🇺🇸
— Dennis Porter (@Dennis_Porter_)
11:54 PM • Sep 20, 2025
Leverage reset: About 1.7 billion dollars in positions were liquidated in 24 hours, with longs at roughly 1.62 billion. Open interest dropped by about 2 billion dollars.
Macro watch: PCE inflation and a Powell speech sit front and center. Rate path signals drive risk appetite.
Rumor risk: Talk of major US political Bitcoin news stirs positioning into Tuesday.
$BTC has over $2,000,000,000 in long liquidations between the $106,000 and $108,000 level.
A sweep of this level seems highly likely in the coming weeks before any big upward move.
— Ted (@TedPillows)
6:43 PM • Sep 21, 2025
Very clean retest for #Bitcoin so far.
Want to see price back in the $116k region ASAP - reclaiming $118k remains the key objective.
Until then, no reason to panic while Bitcoin moves around in the same range.
— Jelle (@CryptoJelleNL)
6:46 AM • Sep 22, 2025
“Hold the higher low here, and BTC likely pushes for 120,000 next.” — Jelle
“I’m expecting another bearish leg that could drag BTC down toward the 100k zone.” — Captain Faibik
$BTC saw over $100M in long liquidations as price dropped below $115k, triggering clustered liquidation levels.
Heatmap data highlights concentrations around $113k–$114k, showing where leverage was most vulnerable.🔗glassno.de/4ngQHdy
— glassnode (@glassnode)
7:39 AM • Sep 22, 2025
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$BTC Another Bearish Wave incoming Soon So Be Ready..⛔️
On the Daily TF, Rising Wedge has already broken and now a Bearish Flag pattern is forming.
I already warned back in August that buyers would get trapped & exactly that happened. Late buyers got trapped, & since then
— Captain Faibik 🐺 (@CryptoFaibik)
5:41 AM • Sep 22, 2025
“Uptober” faces a test after a red start
October is usually green for BTC, but mixed signals and macro uncertainty cool enthusiasm.
Seasonals: BTC finished October higher in 10 of the past 12 years. Gains hit 48 percent in 2017 and 40 percent in 2021. Last October loss was 2018 at minus 3.8 percent.
Split views: Bulls cite high odds of more Fed easing and fresh liquidity. Others point to low implied volatility, weaker inflows, and profit taking.
Lower is coming.
But then mucuuccuucchchhh higher sers.
And you can then breathe a sigh of relief because you wont have to bend over your wifes bf.
It's ok...
Syko has got you 😉
In all seriousness, as Ive been saying for a wee while, $112.5k is the number and when we get
— Sykodelic 🔪 (@Sykodelic_)
2:27 AM • Sep 22, 2025
“With this liquidity drain complete, up only mode resumes.” — Arthur Hayes
“We expect any BTC rallies to be relatively muted given low implied volatility and profit takers capping upside.” — Augustine Fan
10 days left until we enter Uptober.
Do you understand?
— Mister Crypto (@misterrcrypto)
4:02 PM • Sep 20, 2025
A sharp selloff hit leveraged longs. Onchain and derivatives data point to fading momentum.
Drop and wipeout: BTC fell about 4 percent to near 112,000. Roughly 1.6 billion dollars in long positions were liquidated across crypto.
Onchain softness: SOPR and a weaker Sharpe ratio show lower risk adjusted returns and fading profitability.
Order flow flips: Taker buy or sell ratio near 0.79 signals sellers in control and rising downside risk.
“Bitcoin is already showing signs of cycle exhaustion and very few are seeing it.” — Joao Wedson
“Even if BTC hits new all time highs, profitability will remain low, and the real focus will be on altcoins.” — Joao Wedson
How to approach yield bearing stablecoins in 2025
Stablecoin yields exist, but access, taxes, and structure matter more than headline APYs.
Models to know: Tokenized treasuries and money market funds, DeFi savings wrappers like sDAI, and synthetic dollars like sUSDe.
Access limits: US and EU rules block issuer paid interest on payment stablecoins. Many treasury tokens restrict retail and US users.
Taxes bite: Rebases and rewards are treated as income when received. Disposals later create capital gains or losses.
“The clear message, always check if you are legally allowed to hold a yield bearing stablecoin where you live.”
“Treat stablecoin yield like an investment product, not risk free savings.”
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This article is not financial advice. Market conditions can change rapidly, and past performance does not guarantee future results