A significant plunge in the crypto market has sent shockwaves across the industry over the last 24 hours, leaving a trail of liquidations in its wake. Around 200,000 traders were forced out of their positions as Bitcoin plunged to a seven-week low, wiping out more than $900 million in liquidations over a single day. Related Reading: Bitcoin Rally Slowed By Old-School Whales, Analyst Warns According to CoinGlass, most of those losses came from long bets that could not weather the slide. Liquidations Hit Retail Traders Reports have disclosed that a single large sale helped set off the cascade. Selling pressure intensified as a large holder offloaded 24,000 BTC, triggering a wave of liquidations, said Rachael Lucas, a crypto analyst at BTC Markets. On Coinbase, Bitcoin briefly fell below $109,000 — its weakest level since July 9. Market participants felt the shock fast; traders who were long were the ones most exposed. Macro Signals And Market Reaction A recent hint from Federal Reserve Chair Jerome Powell at Jackson Hole about potential interest rate cuts changed how some investors priced risk. Since August 14, when Bitcoin reached an all-time high just over $124,000, the asset has corrected by over 10%. Based on data, the drop since Powell’s speech is about 7%. The single-day move was measured at close to 3% decline for Bitcoin, and total crypto market value slipped back below $4 trillion to about $3.83 trillion as almost $200 billion flowed out of the space. Ether Is Holding Up Ether traded near $4,340 and, for now, looks steadier than Bitcoin. It did fall, but it did not breach last week’s low. Institutional interest in Ether remains a talking point. According to Lucas, institutions continue to focus on Ethereum, even as traders reassess risk across smaller coins. Related Reading: Solana Extends Streak, Outshines Ethereum in DEX Volume – Details Altcoins Took Bigger Hits Many smaller tokens fell harder than the majors. Solana, Dogecoin, Cardano, Chainlink, and Sui were among the worst hit. That pushed losses beyond the headline Bitcoin numbers and left traders in altcoin-heavy positions nursing larger drawdowns. Thin weekend liquidity served to enhance the price gyrations, making the action more extreme than it would have been on a more active trading day. September’s Track Record And Outlook There is also a historical component to the tale. September has a history of strong pullbacks in bull markets, with strong corrections in 2017 and 2021. Featured image from Meta, chart from TradingView
The position could be a hedge against a long position as part of a broader strategy, though the tracked wallet held only a short trade.
Bitcoin’s price shook off last week’s dip and climbed sharply on Tuesday morning in Asia, topping $110,000 briefly before settling around $109,450. Traders rushed back in after the asset dipped close to $100,000, feeding a sharp rebound that leaves Bitcoin just 2.8% shy of its record high. A blend of forced liquidations, surging derivatives volume, easing US–China trade tensions and steady on-chain withdrawals is driving the move. Related Reading: Elon Musk ‘Will Do Anything’ To Make XRP King, Tech Mogul Says Heavy Liquidations Shift The Balance According to Coinglass, nearly $203 million in Bitcoin positions were wiped out over the past 24 hours. Of that, $195 million were against shorts. When so many short bets unwind at once, it forces buyers to cover positions, which can send prices spiking. Yet history shows these “short squeezes” can reverse quickly when traders take profits. Based on reports, Bitcoin’s derivatives volume more than doubled, climbing over 110% to $110 billion. Open interest then followed suit, expanding 7.3% to almost $77 billion. These kinds of inflows indicate that new money is accumulating. Both open interest and volume rising tends to indicate enthusiasm—and a willingness to carry through positions with swings. Trade Diplomacy Lifts Risk Assets Talks resumed in London on June 9 between the US and China over tariffs and export rules. Even a hint of progress tends to boost appetite for riskier assets, and Bitcoin isn’t immune. Headlines of smoother trade ties lifted equities earlier this week—and crypto traders moved in tandem. If negotiations hit a snag, though, Bitcoin could slide with global markets. On-Chain Data Shows Steady Accumulation CryptoQuant’s numbers reveal that centralized exchanges have shed 550,000 BTC since July 2024, falling from 1.55 million to about 1.01 million today. As coins leave exchanges, float tightens. At the same time, the Coinbase Premium indicator rose, with US buyers paying more than overseas investors. Santiment also reports renewed accumulation among wallets holding 10–100 BTC. This pattern hints at long-term holding rather than quick trades. Related Reading: Ignore The Trump–Musk Noise: Bitcoin’s Backbone Stays Solid Correlation And Caution Remain When you consider the rally, Bitcoin still dances on the tunes of equity price swings. Futures have mixed bets between bulls and bears, showing portrait-wise signs that certainly not everybody is convinced this run is going to hold. High volatility would tend to wash out weak hands at the slightest hint of trouble, any reversal of risk sentiment, or a sudden macro shock would cost the rally dearly. Optimism is building as analysts talk of fresh all-time highs. Some even eye $150,000 by the end of the year if US debt levels climb further. But sustaining a rally of that magnitude will require more than forced liquidations. Traders will watch derivatives flows, on-chain reserves and trade headlines for signs of real, lasting demand before pushing prices much higher. Featured image from Imagen, chart from TradingView
Bitcoin’s latest liquidation sweep erased $652.84 million across crypto on April 23, wiping out 172,948 traders. Bitcoin alone contributed $321.70 million, or roughly 50% of the total. Exchange dashboards show shorts carried almost the entire weight: on Bybit, HTX, Gate.io, and CoinEx, more than 95% of BTC positions liquidated were shorts, and across the market, […]
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