Bitcoin sinks below $109k wiping $170 billion from crypto market
The crypto market is reeling after a sharp reversal that erased nearly all of its recent gains, with Bitcoin falling below $109,000, and Ethereum slipping under $4,000.
The sell-off has left traders grappling with high volatility, forced liquidations, and a renewed sense of caution across digital assets.
FOMC hangover
Timothy Misir, head of research at BRN, described the current downturn as a “post-FOMC hangover,” while pointing out that Bitcoin price dropped to as low as $108,652 during the week.
According to Misir:
“The move flushed highly leveraged longs and prompted a swift repricing: volatility spiked, puts were bought aggressively, and front-end skew moved materially higher.”
Notably, this price slump dipped below BTC’s short-term holder realized price of $109,700 for the first time in five months, signaling stress among recent buyers.
Ethereum mirrored the weakness, dropping to its lowest level since early August. Solana fell under $200, and the total crypto market capitalization shed about $170 billion in 24 hours as risk aversion gripped investors.
CryptoQuant analyst JA Maarturn pointed out that this current sell-off represents a significant cleanup in risk-on positioning. He estimated that $11.8 billion in leveraged altcoin bets and $3.2 billion in speculative Bitcoin positions have been flushed out, effectively resetting risk appetite across the market
What next?
Despite this decline, analysts at Matrixport have argued that the derivatives markets are flashing mixed signals for crypto investors.
“Funding costs, leverage, and volumes across BTC, ETH, and SOL highlight both fragility and opportunity,” they noted, pointing to clustering signals around key on-chain thresholds that often precede major breakouts.
They added that Bitcoin is nearing the apex of a symmetrical triangle, a technical formation that previously preceded decisive moves.
However, with option traders already positioning near the critical $110,000 zone, any deviation from the seasonal volatility pattern, which typically ramps up in mid-October, could spark an earlier breakout or deeper correction.
They concluded:
“Emerging patterns in skew, open interest, and volatility suggest the next phase of the cycle may unfold very differently from the last.”
The post Bitcoin sinks below $109k wiping $170 billion from crypto market appeared first on CryptoSlate.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
How much is ETH really worth? Hashed provides 10 different valuation methods in one go
After taking a weighted average, the fair price of ETH exceeds $4,700.

Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost
People tend to overestimate what can happen in two years, but underestimate what can happen in ten years.

Balancer Rallies to Recover and Redistribute Stolen Funds After Major Cyber Attack
In Brief Balancer plans to redistribute $8 million to users after a massive cyber theft. The recovery involved crucial roles by white-hat researchers rewarded with 10% incentives. Unclaimed funds will undergo governance voting after 180 days.

Bitcoin Faces Renewed Selling Pressure as Whale Deposits Spike and Market Fear Deepens

