Crypto Market Continues to Fall on Thursday
The cryptocurrency market stayed in the red on Thursday. Bitcoin (BTC), Ethereum (ETH), and major altcoins dropped further after heavy liquidations earlier this week. Over $400 million in positions were liquidated in the last 24 hours. This shows that traders remain bearish.
Reasons Behind the Market Drop
Bitcoin fell below $112,000, and Ethereum slipped under $4,000. Other top altcoins like Ripple (XRP), Binance Coin (BNB), and Solana (SOL) also lost value. The main reasons for the decline are the Federal Reserve’s cautious approach and rising geopolitical tensions.
Last week, the Fed cut interest rates by 25 basis points. But Fed Chair Jerome Powell said more cuts might not come soon. He warned that easing too fast could worsen inflation. This boosted the US dollar and hurt risk assets like cryptocurrencies.
Geopolitical conflicts, including the Russia-Ukraine war and Israel’s military actions in Gaza, added to the negative market mood.
Liquidations Keep Pressure on Crypto Markets
After large liquidations on Monday, the market stayed weak throughout the week. Nearly 129,000 traders were liquidated in the past day, wiping out over $400 million in positions, according to Coinglass data. Most liquidations (81%) were from long positions, showing traders were too optimistic.
The biggest single liquidation was on Hyperliquid, where an ETH/USD position worth $29.12 million was closed.
September’s Track Record for Bitcoin
Historical data from CoinGlass shows September usually brings losses for Bitcoin. The average monthly return is -3.24%. Although Bitcoin is up 3.17% so far this month, traders should be cautious. History suggests the month could still end with losses.
