Around 200,000 traders were liquidated with a total value exceeding $900 million in the past 24 hours, as the price of Bitcoin fell to a seven-week low. This decline has wiped out the gains that this cryptocurrency had made after the Chairman of the U.S. Federal Reserve (Fed) signaled the possibility of interest rate cuts at the Jackson Hole conference last week.
According to a report from CoinGlass, the majority of liquidations were long positions, occurring when Bitcoin temporarily fell below $109,000, the lowest price since July 9.
"Selling pressure has increased as a large investor sold 24,000 BTC, leading to a wave of liquidations," said Rachael Lucas, a cryptocurrency analyst at BTC Markets.
As of now, Bitcoin has adjusted 12% from its all-time high (ATH) on August 14, when the price surpassed $124,000, and has fallen 7% since Jerome Powell's speech at Jackson Hole on Friday, in which he hinted at easing monetary policy.
"We need to go through some tough liquidation days to be able to recover and move forward," Bobby Ong, co-founder of CoinGecko, stated on Monday.
Meanwhile, gold investor Peter Schiff predicted on Tuesday that the price of Bitcoin could drop to $75,000, while recommending: "Sell now and buy back when the price is lower."
"Capital is shifting out of risk assets, with thin liquidity over the weekend increasing volatility. Ethereum remains the focus of institutions, but the market is currently weighing whether this is a pause in the uptrend or the beginning of a deeper decline," Lucas commented in a note cited by Cointelegraph.
September is often regarded as a bearish month during bull market years for cryptocurrencies, with significant corrections having occurred this month in 2017 and 2021.
Ether remains stable
Due to Bitcoin's daily drop of 2.8%, the total market capitalization has once again fallen below $4 trillion, as cryptocurrency markets wiped out all profits from last week. Nearly $200 billion has left the market, bringing the total capitalization back to $3.84 trillion.
Ether has dropped to $4,340, still higher than last week's low, indicating it is performing better than Bitcoin at the moment. However, many other altcoins are suffering even greater losses, with larger declines recorded in coins like Solana, Dogecoin, Cardano, Chainlink, and Sui.
