The broader cryptocurrency economy experienced a significant setback, shedding $240 billion in total market capitalization as Bitcoin (BTC), Ethereum (ETH), and other major assets recorded sharp weekly declines. Over $6 billion in leveraged positions were liquidated, marking a volatile period for the industry.
Bitcoin and Ethereum Lead the Market Retreat
The overall crypto market cap dropped from $4.12 trillion to $3.88 trillion, with Bitcoin leading the downward trend.
Bitcoin (
$BTC ): The leading cryptocurrency fell by 5.5% weekly, dropping from approximately $115,700 to $109,500. This made BTC one of the poorest performing assets during the period.
Ethereum (
$ETH ): ETH closed the week down 11% at $3,992, dipping below the $4,000 level for the first time since early August. The selling pressure negated normally bullish news, such as reports of additional ETH purchases by Bitmine Immersion.
XRP also finished the week down nearly 7%, trading below $2.79, allowing the stablecoin USDT to solidify its position as the third-largest digital asset by market capitalization.
Altcoin Losses and Massive Liquidations
The downturn was widespread, affecting major altcoins and causing severe losses for leveraged traders.
Altcoin Losses: Several major altcoins suffered double-digit losses, including SOL (-16%), DOGE (-14%), and ADA (-12.8%).
Market Liquidity Wipeout: Data from Coinglass confirms that more than $6 billion in leveraged positions were liquidated throughout the week, with long contracts accounting for the vast majority of the losses. This included the largest single-day liquidation event of 2025 on September 22, when approximately $1.7 billion in positions were wiped out.
The carnage in the derivatives market underscores the extreme volatility that continues to plague the sector, despite growing institutional interest.
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