Liquidations have created a massive havoc in the crypto markets. Investors were riding a wave of hope after Jerome Powell hinted at potential U.S. interest rate cuts, boosting Bitcoin toward $117,000 and Ethereum to fresh highs.
But that optimism evaporated as a massive whale offloaded 24,000 BTC over the weekend, triggering a brutal flash sale across leveraged positions and upending the weekend’s momentum.
Sudden Collapse Shakes 200,000 Traders
The resulting drop brought Bitcoin’s price down from its mid-week high, a retreat that exposed the fragility beneath the rally. Over 200,000 leveraged traders were liquidated in a single blow, accelerating losses across crypto derivatives markets. Options contracts soon showed elevated demand for downside protection, highlighting traders’ pivot to caution.
$900M+ Liquidations Reveal Market Vulnerability
Here’s the scale: more than $900 million in leveraged positions were liquidated as Bitcoin neared a seven-week low close to $110,000.
Volatility skyrocketed as Bitcoin’s daily volatility jumped from 15% to 38%, and Ethereum’s soared from 41% to 70%. This avalanche of liquidations indicates that even seemingly minor missteps in timing or sentiment can cascade into systemic erosion.
Bitcoin currently rests at $111,568, which is PKR 3.16 crores. It went down from an all-time high of $124,000 (PKR 3.51 crores). Find up-to-date conversion in PKR from our currency converter.
Liquidations: What Analysts Are Expecting Next
Technically speaking, Bitcoin’s current weakness places it right at a critical juncture. If it fails to hold above $110,000, analysts warn of possible revisits to support levels around $103,700 or even $100,800 by late September. Ethereum, meanwhile, threatens a return to $4,000 if its own volatility doesn’t stabilize soon.
Events like these are reminds that there is a razor-thin line between boom and bust in crypto markets. As rallies stretch prices, even the largest economies of scale can collapse overnight. For traders and investors, timing and risk management are more critical than ever. Short-term traders can easily become the first victims of the leverage tide.
Silver Linings Amid the Storm?
Amid the chaos, experts saw institutional players quietly accumulating what they could get. MicroStrategy injected $357 million to add 3,081 BTC to its holdings, while spot Ethereum ETFs netted $444 million in inflows, outperforming Bitcoin products dramatically.