Key Insights:
- Today’s crypto market crash leads to another $656M in liquidations, as Bitcoin and altcoins once again test crucial support levels.
- Altcoins like BNB, XRP, DOGE, and ADA have also fallen to key support levels. With this, some are suggesting a potential bullish opportunity similar to the 2021 post-COVID altseason.
- The market is treading carefully ahead of Fed Chair Jerome Powell’s upcoming speech. There’s a 97% probability of a rate cut by the Federal Reserve this month.
The crypto market is facing yet another major liquidation event, with $656 Million of leveraged positions liquidated today. Today’s market crash comes as the Bitcoin (BTC) price tanked 4% to the crucial support level of $110,000.
Ethereum, BNB, XRP, and other major altcoins have dropped 5% to 10%. This decline comes just before Jerome Powell’s anticipated speech.
Crypto Market Crash Sees Over $656 Million in Liquidations
Bitcoin and leading altcoins are bracing for a major liquidation event within the next week. Coinglass data shows a total value of $656 Million. In the past 24 hours, 206,817 traders were liquidated, resulting in a total liquidation of $661.43 Million.
Amid today’s crypto market crash, Bitcoin has managed to fill the CME gap in the range of $110,000 to $111,000. Analysts note that if BTC bounces back after closing this gap, a recovery rally could follow.
However, failure to hold momentum may push prices down toward the $107,000 support level. Crypto analyst Ted Pillows noted that Bitcoin currently has liquidity on the upside.
This indicates potential for further gains. He warned that the chart is losing momentum in the crypto market. Pillows noted that if BTC drops below $110,000, the next support level is $107,000.
On the other hand, Elon Musk made a bullish tweet on Bitcoin after the recent rise in debate of the “debasement trade.” “Bitcoin is based on energy. You can issue fake fiat currency, and every government has, but you can’t fake energy,” said Musk.
Altcoins Contribute to the Crypto Market Crash
Altcoins, especially Ethereum, have played a role in the recent crypto market correction. ETH has once again slipped below the key $4,000 support level. Crypto analyst Ted Pillows reported that Ethereum ($ETH) has fallen below its $4,060 support level.
He noted that the next major support lies at $3,800. Also, a failure to hold this level could push ETH further down to the $3,400–$3,600 zone. Conversely, Pillows added that if Ethereum reclaims the $4,060 and $4,250 levels, a strong rally could be underway.
On the other hand, BNB price has dropped 10% under $1,200 after staging a full recovery from Friday’s lows. Binance Coin (BNB) is now making oscillations in the zone of $1,100 to $1,300.
Other altcoins, such as XRP, Dogecoin (DOGE), and Cardano (ADA), have dropped to their crucial support levels. Crypto analyst Crypto Rover noted that altcoins have recently fallen to their lowest levels against Bitcoin since the 2021 Covid crash.
The analyst highlighted that a similar scenario in the past sparked a major altseason. This suggests potential bullish opportunities for altcoins in the near term.
Jerome Powell Speech on Radar With Expectations of Fed Rate Cut
Fed Chair Jerome Powell will deliver a key speech titled “Economic Outlook and Monetary Policy” at the NABE annual meeting today. The crypto market is closely watching for any signals that could impact investor sentiment.
Investors are closely monitoring the remarks for guidance on U.S. interest rate policy amid ongoing market turbulence. Futures markets currently price in a 97% probability of a 25-basis-point rate cut in October.
Moreover, the market is also predicting another 89% chance of another reduction in December. This reflects broad expectations of monetary easing.
The speech comes amid heightened geopolitical and economic uncertainty. Last week, former President Donald Trump’s announcement of 100% tariffs on Chinese imports triggered sharp declines across risk assets.
At the same time, the U.S. government shutdown has delayed the release of key economic data. This includes consumer inflation and wholesale cost reports, leaving investors and policymakers with limited visibility into these key financial indicators.
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