3 Minutes
Market snapshot: Massive liquidations as BTC drops
Cryptocurrency markets endured heavy volatility as Bitcoin briefly slid to seven-week lows under $109,000, wiping out gains posted after the Federal Reserve chair’s Jackson Hole remarks. The sell-off triggered roughly 200,000 trader liquidations worth more than $900 million over 24 hours, according to market trackers.
What drove the crash
Data from CoinGlass shows most of the liquidations were long positions, amplified by the abrupt bearish move. Bitcoin (BTC) fell to its weakest level since July 9 on Coinbase, and market participants pointed to a single large holder selling 24,000 BTC as a catalyst that intensified a wave of automated margin liquidations.
Quotes from analysts
Rachael Lucas, a crypto analyst at BTC Markets, said selling pressure spiked after the sizable offload, while institutional observers noted capital rotation away from high-risk positions amid thinner weekend liquidity. CoinGecko co-founder Bobby Ong framed the episode as a difficult but necessary correction, saying the market must 'work through liquidation days' before resuming an uptrend.
Broader market impact
The pullback shaved roughly 12% off Bitcoin’s value from its Aug. 14 all-time high near $124,000 and pared roughly 7% since Jerome Powell’s speech at Jackson Hole, where he signaled potential interest rate cuts down the line. The broader crypto market also felt the pain: a 2.8% daily decline in BTC helped push total crypto market capitalization back below $4 trillion, with about $200 billion leaving the space and total cap retreating to approximately $3.84 trillion.
Ether and institutional interest
Ethereum (ETH) held up better relative to Bitcoin, remaining a focus for institutional buyers even as traders debated whether the drop marks only a pause in the bullish cycle or the start of a deeper correction. Historical seasonality adds pressure: September has tended to produce notable pullbacks during crypto bull markets, including in 2017 and 2021.
What traders should watch next
Key considerations for market participants include leverage levels in derivatives markets, liquidity conditions during U.S. sessions, and macro signals about rate cuts. Short-term traders should monitor order-book liquidity on major exchanges like Coinbase and derivatives platforms, while longer-term investors will weigh whether the shakeout offers a buying opportunity.
BTC fell below $109,000 on Coinbase on Tuesday.
Comments