Bitcoin Price Falls: Who's at Risk of Liquidation?

Bitcoin's price fluctuations can have severe consequences for crypto loan holders. When a loan-to-value ratio (LTV) crosses a limit set by the lender, the loan is liquidated, and the collateral is sold without consent.

The LTV ratio is calculated by dividing the loan amount by the current value of pledged coins. The higher the price falls, the higher the LTV rises, and once it reaches a published threshold, the lender sells the collateral to cover the debt.

On September 8, 2026, Bitcoin traded at $78,741, or €67,719, according to CoinGecko's public price interface. The one-year high was $124,740 on October 7, 2025, and the one-year low was $58,566 on July 1, 2026.

The difference between these two prices is 113%, which determines who can sleep soundly today and who must post more collateral. The loan amount stays fixed, but the value of collateral moves minute by minute, making LTV a moving measure.