The week began with sharp losses across the cryptocurrency sector. Bitcoin dropped more than 2.5% to trade below $113,000. Major altcoins fell more steeply, with Ethereum, XRP, and Solana each down over 6%, while Binance Coin declined 5%. Nearly all large-cap assets recorded losses, bringing the total crypto market capitalization down by almost 4%.
Liquidations Drive Volatility
The decline was abrupt, with prices across major assets plunging within minutes earlier today. Data shows that more than $1.5 billion worth of long positions were liquidated over the past 12 hours, with Ethereum accounting for the largest share.
More than 400,000 traders were affected, highlighting how leveraged bets on higher prices were wiped out in a cascade of forced selling. Analysts note that these events often amplify volatility, creating sharp downward moves that can unsettle broader sentiment.
Read also: How to recognize a crypto presale scam? Full guide
Traditional Markets Steady After FED Cut
In contrast, traditional markets are starting the week on steadier footing. US stock futures are slightly lower after last week’s strong gains that saw the Dow and S&P 500 reach fresh record highs.
The moves follow the Federal Reserve’s decision to cut rates by 0.25% last week, its first reduction since this year. While investors will be watching this week’s inflation data, including the personal consumption expenditures (PCE) index, the broader equity market remains on a supportive track.
Outlook For Crypto
Despite today’s sharp drop, prices remain high in the broader context. Bitcoin is still well above $110,000, Ethereum is holding over $4,200, and most major coins are significantly stronger compared to earlier this summer.
September has historically been one of the weakest months for crypto, and seasonal trends combined with liquidation-driven volatility are contributing to the current caution. Traders will now be watching whether Bitcoin can defend the $112,000–$114,000 zone, a key support area that has repeatedly attracted buying interest in recent months.
