Crypto Carnage Wipes Out $640M: Bitcoin, Ethereum, XRP Plunge in Market Meltdown

Crypto markets bled red as liquidations hit staggering levels—traders got crushed while major coins tanked.

The Great Unwind

Leveraged positions evaporated faster than meme coin promises. Bitcoin's slide triggered domino-effect selling across the board.

Altcoin Avalanche

Ethereum and XRP followed Bitcoin's lead downward—no safe havens in this storm. The $640 million liquidation figure tells only half the story.

Margin Call Mayhem

Over-leveraged bulls learned the oldest lesson in finance: markets don't care about your conviction. Another day, another 'buy the dip' opportunity for those with dry powder—and stronger stomachs than the traditional finance crowd clutching their pearls.

Bitcoin, Ethereum, and XRP Face Technical Breakdown

Bitcoin dropped 1.4% to $122,400 after failing to hold its record high above $126,000, triggering a wave of automated selling as exchange inflows surged past $5.7 billion. Analysts point to a cooling RSI and rejection NEAR upper Bollinger Bands as signs that short-term momentum has weakened.

Ethereum fell nearly 4.5% to around $4,450, its largest daily drop in over a month, as traders rotated capital back into Bitcoin ETFs and stop-loss orders accelerated the decline.

XRP, meanwhile, tumbled 3.5%, slipping below key support at $2.90, with Coinglass reporting a 4,300% spike in liquidation imbalance, a clear sign that overleveraged longs were flushed out.

Despite the selloff, technical analysts suggest the pullback may serve as a leverage reset, setting the stage for more sustainable upside later this month.

With Bitcoin’s RSI nearing 42 and Ethereum hovering around oversold zones, some traders are eyeing the $118K–$121K BTC region and $4,200 ETH level as potential reaccumulation zones.

ETF Outflows and Macro Pressure Add Fuel to the Decline

Market data shows Grayscale’s bitcoin ETF recorded $28.6 million in net outflows, snapping its prior streak of inflows and contributing to bearish sentiment. Simultaneously, perpetual futures volume surged 22% to $540 trillion, showing heightened volatility and defensive positioning.

Adding to the macro headwinds, the U.S. dollar index (DXY) hit a two-month high, and 10-year Treasury yields hovered around 4.13%, tightening financial conditions just ahead of the FOMC minutes release. These factors reinforced the shift toward risk-off positioning across both traditional and crypto markets.

With more than $640 million liquidated, Bitcoin, Ethereum, and XRP have entered a crucial technical zone. If buyers fail to defend near-term supports, the selloff could deepen, but a bounce from these levels could mark the start of a new accumulation phase heading into late October.

Cover image from ChatGPT, ETHUSD chart from Tradingview