Bitcoin’s sharp decline has triggered over $900 million in crypto liquidations within 24 hours, marking the biggest flush-out since early summer.
Massive Liquidations After Jackson Hole Rally Ends
The crypto market witnessed a major shakeout as Bitcoin briefly plunged below $109,000, erasing all gains made since the Federal Reserve Chair’s Jackson Hole speech. According to CoinGlass data, more than 200,000 traders were liquidated, amounting to over $900 million, with the majority being long positions.
Analysts attribute the sudden drop to a large holder selling 24,000 BTC, which triggered a cascading effect of liquidations. Rachael Lucas, an analyst at BTC Markets, stated, “Selling pressure intensified as a large holder offloaded 24,000 BTC, triggering a wave of liquidations.”
Bitcoin Down 12% From All-Time High
Bitcoin has now corrected 12% since its recent all-time high of $124,000 on Aug. 14, and is down 7% since Jerome Powell’s speech, where he hinted at potential rate cuts. At press time, BTC trades near $109,534, its lowest price since July 9.
Bobby Ong, co-founder of CoinGecko, commented: “We have to go through the tough liquidation days so that we can go up.”
Meanwhile, gold advocate Peter Schiff predicted a deeper correction to $75,000, advising traders to “Sell now and buy back lower.”
Altcoins and Market Impact
The total crypto market cap has fallen back below $4 trillion, shedding $200 billion in a day, now standing at $3.84 trillion.
- Ethereum (ETH) is holding better, trading at $4,394, down slightly to $4,340, still above last week’s low.
- Solana (SOL) plunged to $187.37, while Dogecoin (DOGE) slipped to $0.2096, Cardano (ADA) dropped to $0.8366, and Chainlink (LINK) to $23.22.
Historically, September has been bearish during bull markets, with major corrections seen in 2017 and 2021. Analysts are now debating whether this is a temporary dip or the start of a deeper pullback.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.