The cryptocurrency market faced a sharp selloff this week, with crypto liquidations exceeding $1 billion in just 24 hours. Major digital assets including Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and Solana (SOL) suffered double-digit weekly losses, leaving investors on edge.
Bitcoin Leads Market Decline
Bitcoin, the largest cryptocurrency by market cap, slid 3.6% in the last 24 hours, dropping below $109,554 according to CoinGecko data. Over the past week, Bitcoin has shed nearly 7%, signaling that even the market’s strongest player is struggling under the weight of macroeconomic pressures and investor uncertainty.
Ethereum, the second-largest cryptocurrency, fell even harder—losing 7% to trade at $3,887 on Thursday afternoon in New York. This steep decline came as selling pressure intensified, with traders unloading long positions en masse.
Dogecoin and Solana Among Biggest Losers
Meme favorite Dogecoin dropped 7.6% to $0.23, while Solana fell 7.7% to $197.52. Both coins are now down more than 21% over the past week, making them the worst performers among the top 100 cryptocurrencies by market cap.
The heavy losses highlight how vulnerable altcoins remain during periods of heightened crypto liquidations, with speculative assets often suffering more than established tokens like Bitcoin and Ethereum.
Liquidations Hit $1.1 Billion in 24 Hours
Data from CoinGlass revealed that over $1.1 billion worth of positions were liquidated in just one day, with long positions making up the majority of losses. This means many traders who had bet on rising prices were forced to exit as markets reversed sharply.
According to analysts at Glassnode, Bitcoin is showing “signs of exhaustion.” Long-term holders have begun taking profits, while exchange-traded fund (ETF) inflows have slowed, removing a key source of recent demand.
Investor Sentiment Turns Bearish
Prediction markets like Myriad show traders leaning bearish, with 70% betting that Bitcoin will fall to $105,000 before breaking above $125,000. While Bitcoin set a new all-time high of $124,128 in August, the latest wave of crypto liquidations has dampened enthusiasm and injected caution into market sentiment.
Juan Leon, senior investment strategist at Bitwise, explained that “crypto is at the mercy of macro right now.” He cited concerns including a possible U.S. government shutdown, geopolitical tensions, and weakening labor markets as headwinds for risk assets.
Is This Cycle Different?
Despite the selloff, some analysts remain optimistic. Leon emphasized that this cycle differs from past bull runs due to regulatory clarity and stronger institutional involvement. Unlike earlier rallies driven by retail enthusiasm, institutional adoption is more gradual but also more sustainable.
Legislative changes such as the recent Genius Act are creating a more favorable environment for digital assets, potentially laying the groundwork for long-term growth even if short-term turbulence persists.
Inflation Data Could Decide Markets’ Next Move
Markets now await Friday’s release of the Personal Consumption Expenditures Price Index (PCE), the Federal Reserve’s preferred measure of inflation. If the data supports the case for another interest rate cut in 2025, risk assets like Bitcoin could rebound as liquidity flows back into markets.
However, if inflation remains stubbornly high, the pressure behind crypto liquidations could continue, dragging prices lower into the fourth quarter.
The Road Ahead for the Crypto Market
The current wave of liquidations underscores the volatility inherent in the crypto market. While institutional adoption and regulatory progress provide long-term optimism, traders must navigate short-term risks tied to macroeconomic data and investor psychology.
As Bitcoin and Ethereum fight to stabilize, and altcoins like Dogecoin and Solana remain under pressure, all eyes are on inflation numbers to determine whether the market can shake off its exhaustion—or whether another round of heavy crypto liquidations awaits.
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