$970 Million Wiped Out as Bitcoin Plunges Below $109,000 - Mass Liquidations Rock Crypto Markets

Crypto carnage hits unprecedented levels as leveraged positions evaporate in spectacular fashion.

The Domino Effect

Margin calls trigger cascade liquidations across major exchanges - traders watch in horror as stop-losses execute like clockwork. Bitcoin's sharp descent below critical support levels creates a vortex of forced selling that amplifies the downward spiral.

Liquidation Bloodbath

Long positions get demolished as funding rates flip negative - the $970 million liquidation event represents one of the largest single-day wealth transfers in crypto history. Derivatives markets resemble a battlefield where overleveraged bulls become the primary casualties.

Market Mechanics Exposed

The liquidation storm reveals structural vulnerabilities in crypto's leverage ecosystem. When prices move against highly leveraged positions, the resulting margin calls create a self-reinforcing feedback loop that traditional finance veterans would recognize immediately - though they'd never admit crypto markets actually move faster than their precious legacy systems.

This isn't just volatility - it's the market violently repricing risk while reminding everyone that excessive leverage cuts both ways. The only thing more predictable than crypto's boom-bust cycles? Wall Street analysts suddenly remembering why they 'always had concerns' about digital assets whenever prices dip.

All assets from the top 10 by market capitalization showed a decline. BNB fell the most significantly — by 5.71%.

Against this background, the daily volume of liquidations on the cryptocurrency futures market exceeded $970 million.

Nearly 227,000 traders’ positions were closed in the last 24 hours. About $855 million of losses were on long positions and about $118 million on shorts. The largest liquidations were recorded in bitcoin and ethereum — approximately $247 million and $313 million, respectively.

Over the past 24 hours, the Fear and Greed Index decreased by seven points to 32, demonstrating that market sentiment is in the fear zone.

Note, crypto researcher Ash Crypto named four probable reasons for the market decline:

• the expiration of options worth $23 billion in bitcoin and Ethereum;
• risk of a US government shutdown — the probability of a shutdown before October 1 is now 67%, which historically triggers panic and market corrections;
• strong economic data — US Q2 GDP came in better than expected (3.8% vs. 3.3%), leading to bearish sentiment in the short term;
• mass liquidations — traders opened many positions with high leverage on decentralized exchanges and are now subject to liquidations.

Recall, earlier Coinbase CEO Brian Armstrong named three arguments in favor of Bitcoin growth to $1 million by 2030.

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