Bitcoin sinks under $109,000, sweeping $170 billion from the crypto market

The crypto market sways after a sharp reversal that erased almost all of its recent profits, with Bitcoin falling below $109,000 and Ethereum slipping below $4,000.

With the sale, traders are working on high volatility, forced liquidation and a new sense of attention across digital assets.

FOMC hangover

Timothy Misir, BRN’s research director, described the current recession as a “post-FOMC hangover,” pointing to the price of Bitcoin falling low as $108,652 a week.

According to Misir:

“The move washed away the highly leveraged longs and prompted a quick re-rick. Volatility spiked, aggressively purchased, and front-end skew moved substantially higher.”

In particular, the price fell under short-term BTC holders, marking the stress among recent buyers, marking the first price of $109,700 in five months.

Ethereum reflects a weakness and has fallen to its lowest level since early August. Solana fell below $200, and in 24 hours, Crypto’s total market capitalization was dumped about $170 billion, as Risk Aversion grasped investors.

Cryptoquant analyst Ja Maarturn noted that this current sale represents a significant cleanup of risk-on positioning. He estimated that leveraged alkine bets would wash away $11.8 billion and speculative Bitcoin positions, effectively resetting risk appetite across the market.

What’s next?

Despite this decline, Matrixport analysts argue that the derivatives market is flashing mixed signals for crypto investors.

“Funding costs, leverage and volume across BTC, ETH and SOL highlight both vulnerabilities and opportunities,” they noted, pointing to clustering around key-on-chain thresholds that precede major breakouts.

They added that Bitcoin is approaching the apex of a symmetrical triangle. This is a technical formation that preceded previously decisive movement.

However, as options traders are already located near the $110,000 key zone, deviations from the seasonal volatility patterns that normally increase in mid-October can cause early breakouts or deeper corrections.

They concluded:

“The new patterns of skew, open interest, and volatility suggest that the next phase of the cycle is significantly different from the end.”

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