Approximately 200,000 traders have faced liquidations amounting to over $900 million in the last 24 hours as Bitcoin sank to a seven-week low, erasing its previous gains following signals of interest rate cuts from the Federal Reserve chair at Jackson Hole last week.
The majority of these liquidations were from long positions, according to CoinGlass, coinciding with Bitcoin (BTC) briefly falling below $109,000 on Coinbase, marking its lowest price since July 9.
“The selling pressure grew as a major holder sold 24,000 BTC, triggering a series of liquidations,” commented Rachael Lucas, a crypto analyst at BTC Markets.
The cryptocurrency has now seen a correction of 12% since its all-time high of just over $124,000 on August 14, and has declined 7% following Jerome Powell’s speech at Jackson Hole on Friday, where he hinted at potential easing of monetary policy.
“We need to endure these tough liquidation days for a rebound,” stated CoinGecko co-founder Bobby Ong on Monday.
In the meantime, Peter Schiff predicted a decrease to $75,000 on Tuesday, further urging, “Sell now and buy back lower.”
BTC fell below $109,000 on Coinbase on Tuesday. Source: TradingView
“Capital is moving out of risky assets, with thin trading volumes over the weekend exacerbating price swings. Although Ethereum continues to attract institutional focus, the market is now assessing whether this is a pause in the upward trend or the initial stages of a more substantial pullback,” Lucas mentioned in a note shared with Cointelegraph.
Historically, September tends to be a bearish month in crypto bull markets, with notable downturns occurring in September 2017 and 2021.
Ether is holding strong
Consequently, with Bitcoin’s 2.8% daily decline, the total market capitalization has fallen below $4 trillion once more as crypto markets wipe out gains from the previous week. Nearly $200 billion has exited the market, resulting in a total market cap of $3.84 trillion.
Related: Late long positions in Bitcoin eliminated as sub-$110K BTC price predictions grow
Ether (ETH) dropped to $4,340, remaining above last week’s low, thus performing better than Bitcoin currently.
Nevertheless, many altcoins experienced greater losses, with more significant downturns observed in Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), and Sui (SUI).
Magazine: ETH ‘god candle,’ $6K next? Coinbase enhances security: Hodler’s Digest
