Bitcoin fell below $110,000 for the first time since early July, triggering a wave of $900 million in contract liquidations in 24 hours.
Cryptocurrency markets plunged into the red on Monday asBitcoin hit a multi-week low, dragging Ethereum and other altcoins lower. The sell-off triggered more than $900 million in Futures Contract in the past 24 hours.
Bitcoin, the largest cryptocurrency by market Capital , fell below $110,000 for the first time since early July, trading at $110,441, down 2.2% on the day and down more than 5% on the week. The decline was triggered after a “whale” Dump 24,000 Bitcoins worth $2.7 billion on Sunday.
Ethereum was hit harder, falling 8% to $4,375, just a day after hitting a new all-time high. ETH crossed $4,900 for the first time on Sunday, just two days after breaking its 2021 price record, but was quickly punished by the market.
Other altcoins were not spared from the sell-off. Dogecoin fell more than 10% to $0.208, Solana lost 8.5% to $186 after hitting a six-month high, and XRP fell nearly 6% to $2.85.
Record Contract Liquidations and Market Sentiment
According to data from CoinGlass , over $900 million in Futures Contract were liquidated across the market, with Ethereum leading the way at $320 million and Bitcoin at around $210 million. Notably, Longing positions dominated with $817 million of the $903 million liquidated.
JOE DiPasquale, CEO of BitBull Capital, said the weekend sell-off was just a trigger, while the broader picture reflects thin liquidation and cautious sentiment in the macro environment. He stressed that the market remains extremely sensitive to large Capital flows amid uncertainty.
Many traders previously did not believe there would be a $1 billion liquidation day this month, but the probability has now increased to 36% as prices continue to fall.
The decline comes amid concerns about new U.S. economic reports and factors that could influence the Fed's interest rate decision. Although Fed Chairman Jerome Powell hinted at a possible rate cut on Friday, a move that typically supports risk assets, markets remained cautious.
Investors are awaiting Friday’s Personal Consumption Expenditures Index report for July, which is expected to rise 2.9% year-over-year. The monthly consumer confidence index on Tuesday is also expected to decline, which could add further pressure to the crypto asset market.
