Bitcoin Plunge Sparks $900M Liquidations as Market Dives
Bitcoin plunged to a seven-week low below $109,000 on Coinbase, sparking over $900 million in crypto liquidations as around 200,000 traders faced forced position closures. Data from CoinGlass shows that long positions suffered most, a whale sale of 24,000 BTC amplified liquidation spikes. Since its mid-August peak above $124,000, Bitcoin has retraced 12%, wiping roughly $200 billion from the global crypto market cap, which dipped below $4 trillion to $3.83 trillion. Ether held firm near $4,340 amid strong institutional interest, while altcoins such as Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK) and Sui (SUI) saw deeper losses amid thin weekend liquidity. Federal Reserve Chair Jerome Powell’s rate-cut hints at Jackson Hole weighed on risk assets, heightening market volatility. Historical September corrections in 2017 and 2021 suggest downside risks may persist. Traders should monitor liquidation spikes and macro uncertainty for potential further corrections.
Bearish
Large-scale liquidations and a major 24,000 BTC whale sale have created significant downward pressure on Bitcoin, triggering abrupt price drops that may spur more stop-loss orders and margin calls in the short term. The breach of the $109,000 support level, combined with Fed rate-cut expectations, is likely to sustain volatility and extend the correction. While strong institutional demand for Ether and potential policy easing could support a medium-term rebound, depleted liquidity and historical September patterns point to continued downside risk, making the near-term outlook bearish for Bitcoin.