- Nearly $2 billion in leveraged crypto positions were liquidated in a single day.
- Over 370,000 traders were affected, with most holding long positions in Bitcoin and Ether.
- Crypto market capitalization dropped more than $150 billion during the sell-off.
- Analysts point to excessive leverage and technical factors, not fundamental weakness, as the cause.
- Experts suggest that the market may stabilize, with potential support zones ahead for Bitcoin.
A major liquidation event hit the cryptocurrency market on Monday, clearing out nearly $2 billion in leveraged positions. More than 370,000 traders lost their positions in a widespread sell-off, according to data from CoinGlass. The majority of the liquidations impacted traders holding long positions in Bitcoin (BTC) and Ether (ETH).
CoinGlass data shows that the liquidations amounted to $1.8 billion within 24 hours. At the same time, the total value of the crypto market decreased by more than $150 billion. The value of Bitcoin dropped below $112,000, and Ether fell to below $4,150, each recording their largest declines since mid-August.
According to Real Vision founder Raoul Pal, these types of liquidations are a regular occurrence. Pal stated on social media, “The crypto market is focused on a big breakout, gets levered long ahead of it, it fails at first attempt, so everyone gets liquidated… only then does the actual breakout occur, leaving everyone sidelined.” CoinGlass described this as the largest long liquidation event of the year. Other big liquidation events happened earlier in February, April, and August, causing sharp market losses over a short period (source).
Market researcher “Bull Theory” explained that high leverage in altcoins (cryptocurrencies other than Bitcoin and Ether) was a key factor. Ether alone saw over $500 million in liquidations, which was more than twice the amount for Bitcoin. “When altcoin leverage gets this extreme, the market doesn’t ignore it. One sharp move down triggers cascading liquidations. That’s how you flush out weak hands and reset the board,” Bull Theory wrote (source).
Nassar Achkar, chief strategy officer at CoinW exchange, said the event appears to be a short-term adjustment rather than a fundamental shift. IG market analyst Tony Sycamore suggested that Bitcoin could dip further to the $100,000–$105,000 range, explaining that this zone serves as technical support for the asset. Such a move could remove speculative traders before offering new buying opportunities.
While Bitcoin dropped by about 13% in early September from its mid-August peak, the fall of 9.5% this week remains slight compared to past bull market corrections. Historically, September tends to show weaker performance for Bitcoin, but gains often follow in October.
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