The cryptocurrency market has just experienced a rapid carnage. Within a few hours, over 1.1 billion dollars in leveraged positions were liquidated. Traders who were overly optimistic about Ethereum’s increase paid a hefty price: over 400 million dollars in long positions vanished in a single night.
Ethereum and Solana Plunge
Bitcoin, still up by 16% since January, stumbled heavily as it dropped below the symbolic mark of 109,000 dollars, its lowest level in a month.
Ethereum also suffered losses: down 8% in 24 hours, the asset now trades close to 3,850 dollars, wiping out its gains since the beginning of August. The contrast is stark: ETH has already lost 22% since its record last month.
Solana, on the other hand, continues its descent. From being above 250 dollars two weeks ago, it is now below 200 dollars, down 8% just on Thursday.
The Wave of Liquidations Shakes the Markets
The severity of the movement can be attributed to a true market derivatives flush. When prices drop too rapidly, leveraged positions are automatically closed, amplifying the decline. After the 400 million in ETH, Bitcoin follows with 265 million dollars liquidated.
This kind of event highlights the fragility of a market where leverage is prevalent. In one night, thousands of retail and institutional traders saw their bets shattered.
Crypto-related Stocks in the Red
The panic also affected listed companies. MicroStrategy (MSTR), Michael Saylor’s investment vehicle and largest corporate BTC holder, dropped as much as -10%, hitting a five-month low. The stock has erased all its gains for the year and now shows a negative performance of -1.5% since January.
A similar scenario unfolds for companies exposed to Ethereum and Bitcoin: Bitmine (BMNR), Sharplink Gaming (SBET), and mining giants Marathon Digital (MARA) and Riot Platforms (RIOT) lost between 7 and 8% in the session.
Support Levels for Bitcoin
With this latest nosedive, the market is eyeing a key level: 107,000 dollars, the floor from late August-early September. Order books show a liquidity “cluster” at this level, possibly serving as a last line of defense if the market does not recover soon.
But the atmosphere remains tense. Amid hopes for central bank interest rate cuts and unleashed volatility, the crypto world once again demonstrates that nothing is ever guaranteed.
