Crypto Liquidations Surge to $1.8B as Market Cap Drops $150B in 24 Hours

• Crypto liquidations hit $1.8 billion in the past 24 hours, mostly long positions.
• Bitcoin falls below $110,000, down over 3%; Ethereum dips under $4,000.
• Analysts cite overleverage, macro uncertainties, and historical September weakness.

The cryptocurrency market experienced a sharp downturn on Thursday, with total liquidations exceeding $1.8 billion over the past 24 hours, according to data from CoinGlass. The majority of these were long positions, affecting over 370,000 traders as prices plummeted across major assets.

Bitcoin led the decline, dropping 3.6% to trade around $109,554, while Ethereum fell 7% to $3,887, marking its first breach below $4,000 since August. Altcoins fared worse, with Dogecoin and Solana each down about 21% over the week.

The sell-off wiped out $150 billion from the overall market cap, bringing it to $3.73 trillion and erasing most of September’s gains. Analysts point to cascading liquidations triggered by overleveraged positions, particularly in altcoins.

Macro factors are weighing on sentiment, including potential U.S. government shutdowns, rising geopolitical tensions, and revised GDP figures that may reduce the likelihood of further interest rate cuts. Glassnode noted signs of market exhaustion, with long-term holders taking profits and ETF flows slowing.

Real Vision founder Raoul Pal described the event as a recurring pattern: “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”.

Looking ahead, support levels for Bitcoin are eyed at $107,000 to $105,000, potentially flushing out weak hands before a rebound. However, upcoming regulatory events like the Senate’s crypto tax hearing could add volatility.

Bitwise’s Juan Leon emphasized the shift to institutional adoption: “This is the first cycle that is being driven by institutional adoption instead of retail adoption”.

Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.