The crypto market experienced significant liquidations exceeding $900 million as Bitcoin's price fell to a seven-week low.
Massive Liquidations in the Market
In the past 24 hours, around 200,000 traders have been liquidated for over $900 million. The majority of liquidations occurred in long positions. Bitcoin's price briefly dropped below $109,000 on Coinbase, marking its lowest point since July 9.
Analysts' Predictions
Rachael Lucas, a crypto analyst at BTC Markets, pointed out that "selling pressure intensified as a large holder offloaded 24,000 BTC, triggering a wave of liquidations." Bitcoin has corrected by 12% since its all-time high of slightly over $124,000 on August 14. CoinGecko co-founder Bobby Ong mentioned, "We have to go through the tough liquidation days so that we can go up."
State of Altcoins
Following Bitcoin's 2.8% daily decline, the total market capitalization dropped below $4 trillion again, with nearly $200 billion exiting the market, bringing the total cap back down to $3.84 trillion. Ether fell to $4,340, which remains above last week's low, positioning it better than Bitcoin for the time being. However, many altcoins such as Solana, Dogecoin, Cardano, Chainlink, and Sui experienced more significant losses.
The crypto market remains under pressure, and experts suggest that this downturn could either be a correction or the beginning of a deeper pullback. Historical trends indicate that September often proves challenging for cryptocurrencies.
