Nearly $900 million worth of crypto positions were liquidated in the past 24 hours after Bitcoin fell to its lowest level in seven weeks, erasing gains made following the Federal Reserve chair’s speech at Jackson Hole.
Data from CoinGlass shows that around 200,000 traders were affected, with most liquidations coming from long positions. Bitcoin briefly dropped below $109,000 on Coinbase on Tuesday, its weakest point since July 9.
The decline was partly triggered by a large sell-off, with one holder unloading 24,000 BTC, according to Rachael Lucas, crypto analyst at BTC Markets. “Selling pressure intensified, triggering a wave of liquidations,” she said.
Bitcoin is now down 12% from its record high of just over $124,000 on Aug. 14, and 7% lower since Jerome Powell hinted at future rate cuts in his Jackson Hole address last Friday.
The wider market also felt the impact, with nearly $200 billion wiped from the sector’s total capitalization, which slipped below $4 trillion. Ether fell to $4,340, though it has held above last week’s lows. Other major altcoins, including Solana, Dogecoin, Cardano, and Chainlink, saw heavier losses.
Despite the sell-off, some analysts believe the correction could pave the way for renewed growth. “We have to go through the tough liquidation days so that we can go up,” said CoinGecko co-founder Bobby Ong.
Skeptics remain, however. Gold advocate Peter Schiff predicted Bitcoin could fall further, saying it may drop to $75,000.
Historically, September has been a weak month for crypto markets, with significant pullbacks seen in 2017 and 2021.
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