Around 200,000 traders have been liquidated to the tune of more than $900 million over the past 24 hours as Bitcoin fell to a seven-week low, slashing its gains after the Federal Reserve chair signaled interest rate cuts at Jackson Hole last week.
The majority of liquidations were long positions, according to CoinGlass, which came as Bitcoin (BTC) briefly dropped below $109,000 on Coinbase, its lowest price since July 9.
“Selling pressure intensified as a large holder offloaded 24,000 BTC, triggering a wave of liquidations,” said Rachael Lucas, crypto analyst at BTC Markets.
The asset has now corrected by 12% since its Aug. 14 all-time high of just over $124,000, and is down 7% since Jerome Powell’s Jackson Hole speech on Friday when he hinted at easing monetary policy.
“We have to go through the tough liquidation days so that we can go up,” said CoinGecko co-founder Bobby Ong on Monday.
Meanwhile, goldbug Peter Schiff on Tuesday predicted a fall to $75,000 before adding, “Sell now and buy back lower.”
“Capital is rotating out of risk, with thin weekend liquidity amplifying swings. Ethereum remains a focus for institutions, but the market is now weighing whether this is a pause in the uptrend or the start of a deeper pullback,” Lucas added in a note seen by Cointelegraph.
September is usually a bearish month during crypto bull market years, with significant pullbacks seen in the ninth month in 2017 and 2021.
Ether is holding up
As a result of Bitcoin’s 2.8% daily decline, total market capitalization has dropped below $4 trillion as crypto markets wipe out all of last week’s gains. Almost $200 billion has exited the space, sending the total cap back down to $3.84 trillion.
Related: Bitcoin late longs wiped out as sub-$110K BTC price calls grow louder
Ether (ETH) dropped to $4,340, which remains above last week’s low, so it is faring better than Bitcoin for the time being.
Still, many altcoins were in deeper pain with larger losses for Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK) and Sui (SUI).
Magazine: ETH ‘god candle,’ $6K next? Coinbase tightens security: Hodler’s Digest
