Crypto market summary: As $1.1 billion in liquidations hit, Bitcoin falls below $109K.
Over the course of the last day, the cryptocurrency market saw a significant decline, with its overall market capitalization falling $150 billion to $3.70 trillion.
Analysts caution that more losses toward $3.58 trillion could result if the $3.67 trillion support is not held. A wave of liquidations that unnerved traders, hawkish U.S. macroeconomic data, and uncertainty around Federal Reserve policy were the main causes of the decline.
Bitcoin and Ethereum are under pressure
In the second quarter, the U.S. economy grew by 3.8%, significantly more than anticipated. This lowered expectations for an impending rate decrease by pushing Treasury rates to a three-week high.
The most severely affected was Bitcoin (BTC), which fell below $109,000 and touched its lowest valuation in almost a month. Before finding some shaky support close to $108,000, Bitcoin fell below $109,000 and reached its lowest price of $109,357. Recovery is currently thought to depend on regaining the $110,000 level.
Meanwhile, Ethereum (ETH) fell more sharply, shedding about 8% in a single day and slipping under $3,850, erasing gains made earlier in the summer. According to CoinGlass, ETH longs accounted for nearly $400 million of the $1.1 billion in leveraged liquidations triggered across the market.
The selloff was reflected in altcoins. Dogecoin (DOGE) and XRP also declined in unison, highlighting a sector-wide retreat, while Solana (SOL) plunged another 6% in a day and is now down almost 20% for the week. As investor enthusiasm for riskier assets waned, pressure mounted on cryptocurrency-related stocks, such as Coinbase and MicroStrategy.
Fear and Greed Index Signals Rising Anxiety
With a decline to 32, the Crypto Fear & Greed Index indicated a return to “fear” zone. The number indicates increased caution among market participants following weeks of volatile price activity, while it is not near capitulation levels.
The drop, according to analysts, indicates a fall in confidence but also the possibility of contrarian “buy-the-dip” posture, especially if macro conditions improve.
Outlook
With a daily turnover of over $75 billion, trading volumes are still strong despite the slump. Since long-term holders are still accumulating, many analysts see the selloff as a tactical retreat rather than a structural collapse.
Future U.S. economic releases, such as labor and inflation statistics, will now be the focus of market attention. These releases might decide whether crypto assets will recover their upward momentum or continue to be pinned by macro headwinds.
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