A huge crypto market crash left a lot of traders with major losses. Over $900 million was wiped out in a single day as Bitcoin plummeted to its lowest point in seven weeks.
Big Losses for Traders
Around 200,000 traders were forced to sell their holdings as Bitcoin’s price tanked. Most of these losses were from traders who were betting on the price going up (long positions). A single, massive sale of 24,000 Bitcoin triggered a chain reaction, making the situation worse. On Coinbase, Bitcoin briefly dipped below $109,000.
What Caused the Crash?
A few things contributed to the crash. Comments from Federal Reserve Chair Jerome Powell about interest rates changed how some investors viewed risk. Since Bitcoin hit a high of over $124,000 on August 14th, it’s dropped by over 10%, with about 7% of that drop happening after Powell’s speech. Bitcoin fell almost 3% in a single day, and the total value of the crypto market dropped below $4 trillion.
Ethereum Holds Steady (Relatively)
Ethereum, however, held up better than Bitcoin, staying around $4,340 and avoiding last week’s lows. Institutional investors seem to still be interested in Ethereum.
Altcoins Take a Beating
Smaller cryptocurrencies (altcoins) were hit even harder than Bitcoin. Solana, Dogecoin, Cardano, Chainlink, and Sui all saw significant losses. The fact that trading volume was lower than usual over the weekend made the price swings even more dramatic.
September’s History and What’s Next
September has historically been a rough month for crypto bull markets, with big corrections in 2017 and 2021. So, this recent drop might be partly due to that historical trend.
