Bitcoin price drop below $109K triggers $900M liquidations
Bitcoin price drop below $109,000 unleashed more than $900 million in trader liquidations, with roughly 200,000 long positions liquidated in 24 hours. A major sell-off of 24,000 BTC by a single holder, combined with thin weekend liquidity and profit-taking after Fed Chair Powell’s Jackson Hole comments, intensified the cascade. Total crypto market cap fell from above $4 trillion to about $3.84 trillion, erasing recent gains. While many altcoins including SOL, DOGE, ADA, LINK and SUI suffered heavier losses, Ether showed relative resilience, trading near $4,340 and holding above last week’s lows. Traders should watch on-chain flows, funding rates and exchange reserves to gauge liquidity and momentum. Risk management—position sizing and stop-losses—remains vital amid potential seasonal pullbacks in September.
Bearish
The large Bitcoin price drop and $900 million in trader liquidations indicate heightened selling pressure and liquidity stress, a classic bearish signal. Similar cascades in 2021 and 2022 followed major sell-offs and thin market conditions, leading to steep corrections. In the short term, margin calls and stop-loss triggers may prolong downward momentum, especially with seasonal September weakness. Over the long term, persistent macro uncertainty and potential shifts in Fed policy could cap gains until clearer inflation and rate-cut signals emerge. Traders should tighten risk controls and monitor on-chain liquidity before reentering long positions.