Crypto liquidations have reached a staggering $900 million as the Bitcoin price plummets, wiping out gains made after the Jackson Hole economic symposium. This dramatic downturn has left approximately 200,000 traders facing substantial losses over the past 24 hours. The majority of these liquidations stem from long positions, as Bitcoin briefly dipped below $109,000 on Coinbase, marking its lowest level since early July.
According to data from CoinGlass, the selling pressure intensified when a significant investor unloaded 24,000 BTC, igniting a cascade of liquidations. “The asset has now corrected by 12% since its August 14 peak of just over $124,000,” notes Rachael Lucas, a crypto analyst at BTC Markets. The Bitcoin price has dropped 7% since Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, where he indicated potential easing of monetary policy.
Understanding the Crypto Liquidations Trend
Lucas elaborates, “Capital is rotating out of riskier assets, with thin weekend liquidity exacerbating market swings. While institutions still focus on Ethereum, the market is debating whether this marks a pause in the uptrend or the onset of a deeper pullback.”
Historically, September has been a bearish month for the crypto market, often seeing significant pullbacks during bull market years, as observed in 2017 and 2021. As Bitcoin’s price continues to decline, the total market capitalization has sunk below $4 trillion, erasing all gains from the previous week. The market cap now stands at approximately $3.84 trillion.
Bitcoin Price and Market Reactions
Despite Bitcoin’s 2.8% daily drop, Ether (ETH) remains relatively stable, trading at $4,340, which is above its low from last week. However, many altcoins, including Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), and Sui (SUI), are experiencing more severe losses.
CoinGecko co-founder Bobby Ong expressed optimism amid the turmoil, stating, “We must endure the tough liquidation days to rise again.” Meanwhile, gold advocate Peter Schiff predicts a further decline to $75,000, advising investors to sell now and repurchase at a lower price.
The current state of the crypto market is a reminder of its volatility, with investors and analysts closely monitoring whether this is a temporary setback or a sign of further declines. As September progresses, stakeholders are keenly observing market trends to gauge the direction of future movements.
