Bitcoin Plunges Below $109K, $900M Liquidated in 24 Hours as Fed Signals Rate Cuts
Bitcoin (BTC) briefly fell to a seven-week low below $109,000 on Coinbase, wiping out all gains made since Federal Reserve Chair Jerome Powell’s Jackson Hole speech last week. The sudden plunge triggered a wave of liquidations, rattling the broader crypto market. Bitcoin was trading at $110,000 at the time of writing.
$900M in Liquidations Hit Traders
According to CoinGlass, nearly 200,000 traders were liquidated in the past 24 hours, totaling more than $900 million in losses. The majority of liquidations were long positions, underscoring the heavy sell-side pressure.
“Selling pressure intensified as a large holder offloaded 24,000 BTC, triggering a wave of liquidations,” explained Rachael Lucas, crypto analyst at BTC Markets.
Bitcoin Wipes Out Powell Speech Gains
Bitcoin has now corrected 12% from its all-time high of $124,000 on August 14, and is down 7% since Powell hinted at possible interest rate cuts in his speech last Friday.
“We have to go through the tough liquidation days so that we can go up,” said Bobby Ong, co-founder of CoinGecko.
Meanwhile, long-time gold advocate Peter Schiff predicted Bitcoin could fall further, warning: “Sell now and buy back lower… BTC could drop to $75,000.”
Crypto Market Cap Slips Below $4 Trillion
The broader crypto market cap dropped below $4 trillion, erasing nearly $200 billion in value in a single day. Total capitalization now sits around $3.84 trillion, marking a sharp reversal from last week’s gains.
Ethereum (ETH), however, held up relatively better. Despite dipping to $4,340, ETH remains above last week’s low, showing resilience compared to Bitcoin.
Still, many altcoins suffered steeper losses, including Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), and Sui (SUI).
September’s Historic Bearish Pattern
Historically, September has been a bearish month for crypto bull markets. Significant pullbacks were seen during the same period in 2017 and 2021, raising questions about whether the current downturn is just a temporary pause or the beginning of a deeper correction.
“Capital is rotating out of risk, with thin weekend liquidity amplifying swings,” Lucas added. “Ethereum remains a focus for institutions, but markets are now weighing whether this is a pause in the uptrend or the start of a broader pullback.”
