Crypto Bloodbath Explained: Liquidations Roil Markets as Powell’s Speech Shakes Bitcoin
Digital assets face brutal selloff as leveraged positions unravel
Mass Liquidations Trigger Domino Effect
Traders got caught in the crossfire when cascading liquidations hit over-leveraged positions. The market's ruthless efficiency exposed weak hands—forcing exits at the worst possible moments.
Powell's Hawkish Tone Spooks Investors
The Fed chair's remarks sent traditional and crypto markets reeling. His commitment to fighting inflation reminded everyone that cheap money isn't coming back anytime soon—bad news for risk-on assets.
Bitcoin Leads the Decline
King crypto's drop dragged the entire ecosystem down with it. When Bitcoin sneezes, altcoins catch pneumonia—today's action proving the old adage remains painfully accurate.
Meanwhile, traditional finance veterans nod sagely while ignoring their own portfolios' performance. Because nothing says 'I told you so' like watching digital assets tumble from the comfort of your declining bond funds.
September 22, 2025 10:13:56 UTC
Why Bitcoin Price is Down Today?
In just 20 minutes, over $1 billion in Bitcoin longs were liquidated following a sharp price drop, highlighting the risks of low liquidity during Sunday night trading. This sudden washout sent shockwaves through the crypto market, but history suggests a rebound is likely as the US market opens, with buyers stepping in to capitalize on the dip. Traders are reminded to stay cautious during these volatile, low-volume periods. Bitcoin dipped below $115K, triggering over $100 million in long liquidations in minutes. Most of the liquidations clustered between $113K–$114K, highlighting how leverage concentrates around key price levels. These zones often act like magnets, fueling volatility. Despite the sudden washout, long-term Bitcoin holders remain unfazed, viewing the drop as temporary noise in the bigger market picture. Traders are reminded to manage risk, as leverage can amplify swings dramatically.
