The cryptocurrency market experienced a severe downturn on Thursday, with Bitcoin (BTC) crashing below $109,000 to its lowest price in nearly a month. The sell-off intensified during U.S. trading hours, creating a domino effect across major digital assets.
Ethereum (ETH) plummeted 8% in 24 hours, falling towards $3,800 and erasing all gains since early August. ETH has now declined 22% from its record highs achieved last month. Solana (SOL), which was trading above $250 just two weeks ago, crashed below $200 with an additional 8% loss today. The broader market benchmark CoinDesk 20 Index dropped 6%.
This aggressive market movement triggered massive liquidations in derivatives markets, wiping out over $1.1 billion in leveraged positions according to CoinGlass data. Ethereum led the liquidation wave with over $400 million in long positions eliminated, followed by Bitcoin with $265 million in liquidated positions.
Crypto-related stocks also suffered significant losses. MicroStrategy (MSTR), the largest corporate holder of Bitcoin, dropped 10% to a five-month low. The stock, often considered a leveraged proxy for BTC, has now erased all its 2024 gains and shows a 1.5% year-to-date decline, while Bitcoin maintains a 16% advance for the same period.
Ethereum-focused companies Bitmine (BMNR) and Sharplink Gaming (SBET) declined 7-8%, mirroring losses in Bitcoin mining stocks like MARA Holdings (MARA) and Riot Platforms (RIOT).
Technical analysis suggests Bitcoin is approaching critical support levels around $107,000, which could potentially stabilize prices. Hyblock Capital data indicates liquidity clusters that might absorb selling pressure and facilitate a market bounce.