Cryptocurrency market suffers record liquidation of $ 1 billion

The cryptocurrency market has suffered a sharp collapse: overnight, bitcoin BTC $107,889.00 Mezo Wrapped BTC -2.25% Market capitalization $38.37 million VOL. 24 hours $2.24 billion fell below a key support level and reached a three-week low of $ 108,600 on the Bitstamp exchange. The total amount of traders' liquidated positions exceeded $ 1 billion, according to CoinGlass. This was the result of large-scale losses not only in bitcoin but also in other major digital assets.

Just a few days ago, bitcoin was at $ 118,000 after the US Federal Reserve decided to cut interest rates for the first time in a year. However, on September 22, the rate plummeted from $ 115,500 to $ 112,000, and at the end of the week, bearish sentiment intensified again. Yesterday, the price dropped to $ 108,600, after which it recovered by about a thousand dollars, but remains below the psychological mark of $ 110,000. Analyst Ali Martinez believes that the level of $ 108,530 is the next critical support.

Further market forecasts remain controversial. Economist Peter Schiff said that the current downturn could be the beginning of a bear market. At the same time, other experts, such as Captain Fabrik, view the situation as a «healthy correction» and predict that bitcoin could rise to $ 140,000 if the rate returns above $ 113,000.

The sharp drop also affected altcoins. Ethereum ETH $3,907.89 Bridged Ether (StarkGate) -3.61% Market capitalization $91.47 million VOL. 24 hours $3.2 billion lost support at $ 4,000 and fell below $ 3,900. XRP XRP $2.73 XRP -3.68% Market capitalization $163.2 billion VOL. 24 hours $0.52 billion showed even worse dynamics: its price dropped by 10% over the week and approached $ 2.80. All major altcoins showed significant losses, following the trend of bitcoin.

High volatility hit traders with excessive leverage the hardest. In just one day, more than 225,000 positions were liquidated, and the total amount of losses reached $ 1 billion. This situation once again emphasized the high risks of trading with a high level of leverage in the digital asset market.