Bitcoin's price dipped below $112,000 on Monday, triggering a $1.7 billion liquidation cascade and dragging altcoins lower as market uncertainty deepens.
Key Takeaways
- Bitcoin fell to approximately $111,500, a nearly 4% drop, while Ethereum plunged 9% to $4,046 amid broader crypto sell-off.
- Over 407,000 traders were liquidated across the market, marking the highest losses in recent months.
- The sell-off was fueled by macroeconomic concerns, including uncertainty over Federal Reserve policy and inflation data.
Earlier today, September 22, 2025, Bitcoin’s price fell to $111,500, marking a nearly 4% drop. Ethereum, the second-largest cryptocurrency, experienced a more significant drop, falling 9% to $4,046. The broader crypto market followed suit, with many altcoins seeing double-digit percentage losses. This downturn led to over $1.7 billion in liquidations across more than 407,000 traders, which takes the record as the highest losses in recent months, according to a CoinDesk report.
Coinpedia Fintech News’ latest report highlighted that the sell-off was triggered by a confluence of factors, including macroeconomic uncertainty and technical breakdowns. Traders had been cautious ahead of Federal Reserve Chair Jerome Powell's upcoming speech and the release of key inflation data. These events heightened fears that the Fed might adopt a more hawkish stance, which could negatively impact risk assets like crypto.
Technical Indicators Show Further Downside Risk
Technicals are suggesting a possible bearish continuation in the short term. Bitcoin’s Relative Strength Index (RSI) has dipped into oversold territory, which indicates that the asset may be undervalued. But some analysts, particularly from CoinPedia, still remain cautious for the further decline especially if the RSI fails to rebound. As of writing (10:15AM UTC), BTC trades at approximately $112,722, dropping 2.6% over the past 24 hours.
On the other hand, Ethereum’s RSI also exhibits weakness as the token falls below key support levels. If the token fails to reclaim $4,200 areas, additional downward pressure is more likely to occur. ETH currently trades around $4,153.30, with an intraday price negative of 7.2%.
Crypto Market Suffers $77B Loss in Broad Sell-Off
The crypto market's total capitalization has taken a significant hit, losing approximately $77 billion during the sell-off, according to CoinCentral. This decline underscores the market's sensitivity to macroeconomic factors and the potential for rapid shifts in investor sentiment.
Despite the downturn, some analysts remain cautiously optimistic. They point to the potential for a rebound if the Federal Reserve signals a more dovish policy stance or if inflation data comes in lower than expected. However, they also warn that without such catalysts, the market could face further declines.
Outlook: Market Eyes Fed Speeches and Inflation Data
Investors and traders remain vigilant as the market navigates this period of heightened volatility. Key events later this week, including Powell's speech and the release of inflation data, will likely play a pivotal role in determining the market's direction. Traders are advised to monitor these developments closely and adjust their positions accordingly.
Summary
Bitcoin dropped below $112,000, sparking $1.7B in liquidations and pulling altcoins like Ethereum lower. Technicals suggest continued downside risk, with RSI readings in oversold territory. The broader crypto market lost $77B in capitalization amid fears over Federal Reserve policy and inflation. Analysts caution more declines could come unless dovish Fed signals or softer inflation data emerge.
