Bitcoin Falls to Seven-Week Lows
The crypto market faced intense volatility as Bitcoin (BTC) plunged below $109,000 on Coinbase, marking its lowest point since July 9. The drop erased all gains made after Federal Reserve Chair Jerome Powell’s Jackson Hole speech, which had previously fueled optimism around interest rate cuts.
According to data from CoinGlass, around 200,000 traders were liquidated in the past 24 hours, with total liquidations surpassing $900 million. Most of the liquidations came from long positions, highlighting the sudden shift in market sentiment.
What Triggered the Sell-Off? ⚡
Crypto analyst Rachael Lucas from BTC Markets explained that the sell-off was partly driven by a large holder who offloaded 24,000 BTC, sparking a cascade of liquidations.
This sell-off pushed Bitcoin down by 12% from its August 14 all-time high above $124,000. Since Powell’s remarks at Jackson Hole, BTC has fallen 7%, showing that macroeconomic factors still weigh heavily on digital assets.
Bobby Ong, co-founder of CoinGecko, remained cautiously optimistic:
“We have to go through the tough liquidation days so that we can go up.”
Market Outlook and Predictions
While some industry players see this as a temporary correction, others are more bearish. Longtime Bitcoin critic Peter Schiff predicted a deeper fall toward $75,000, advising investors to “sell now and buy back lower.”
Lucas noted that capital rotation is also influencing the market:
“Capital is rotating out of risk, with thin weekend liquidity amplifying swings. Ethereum remains a focus for institutions, but the market is now weighing whether this is a pause in the uptrend or the start of a deeper pullback.”
Ethereum and Market Cap Trends 🌐
Despite Bitcoin’s sharp decline, Ethereum (ETH) has shown relative strength. ETH dipped to $4,340, which is still above its recent lows, suggesting that institutional interest may be helping to stabilize its price.
Meanwhile, the overall crypto market capitalization dropped below $4 trillion, shedding almost $200 billion in value. As of now, the market cap sits at around $3.84 trillion, erasing all of last week’s gains.
September Seasonality in Crypto 📊
Historically, September has been a bearish month for crypto, even during bull cycles. In both 2017 and 2021, Bitcoin saw significant pullbacks in September before resuming its uptrend.
Whether the current correction is just another seasonal dip or the beginning of a deeper downturn remains to be seen.
Final Thoughts
Bitcoin’s sharp correction highlights the risks of leveraged trading in volatile markets. With over $900M in liquidations and billions wiped from market cap, traders face uncertain weeks ahead.
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