Top altcoins including Ethereum, XRP, Solana, and Cardano recorded daily losses between 4–12%, while BNB stood out as the only large-cap gainer. The pullback hit investor sentiment hard, with CoinMarketCap’s Fear and Greed Index settling at 47 (Neutral), reflecting caution in the market.
One of the key drivers of today’s slump was the wave of liquidations across leveraged positions. In the past 24 hours, 407,023 traders were liquidated, wiping out a total of $1.70 billion. Of this amount, over $1.61 billion came from long positions, underscoring how traders betting on higher prices were caught off guard. The largest single liquidation order occurred on OKX’s BTC-USDT swap, worth $12.74 million. These events triggered a cascade effect, amplifying volatility across the sector.
In the crypto market, liquidations occur when traders using leverage fail to meet margin requirements, forcing exchanges to close their positions. When longs dominate liquidations, it means the majority of bullish traders are being forced to sell at lower levels, flooding the market with supply. This creates additional downward pressure on prices and sparks panic among retail traders, who often follow with manual sell-offs.
Today’s losses also align with historical seasonal trends. Research from Bitcoin Suisse and Bitget shows that August and September are historically the weakest months for crypto, with average declines of 0.54% in August and 4.16% in September. Since 2013, eight out of twelve Septembers have closed in the red, making this period notoriously challenging for Bitcoin and altcoins. These patterns amplify caution among investors, especially when macroeconomic or liquidity shocks hit the market.
Analysts warn that if Bitcoin fails to hold the $112,000–$114,000 support zone, another leg down could test $110,000. For Ethereum, a continued slide below $4,200 raises the risk of deeper corrections. However, if U.S. markets open with strong inflows, the sector could see a short-term rebound. Still, with liquidations fresh in traders’ minds and September’s weak track record, volatility is expected to remain high in the days ahead.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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