Bitcoin sinks below $109k wiping $170 billion from crypto market after FOMC shock

The crypto marketplace is reeling aft a crisp reversal that erased astir each of its caller gains, with Bitcoin falling beneath $109,000, and Ethereum slipping nether $4,000.

The sell-off has near traders grappling with high volatility, forced liquidations, and a renewed consciousness of caution crossed integer assets.

FOMC hangover

Timothy Misir, caput of probe astatine BRN, described the existent downturn arsenic a “post-FOMC hangover,” portion pointing retired that Bitcoin price dropped to arsenic debased arsenic $108,652 during the week.

According to Misir:

“The determination flushed highly leveraged longs and prompted a swift repricing: volatility spiked, puts were bought aggressively, and front-end skew moved materially higher.”

Notably, this terms slump dipped beneath BTC’s short-term holder realized terms of $109,700 for the archetypal clip successful 5 months, signaling accent among caller buyers.

Bitcoin Short Term Holders Realized Price (Source: JA Maarturn)

Ethereum mirrored the weakness, dropping to its lowest level since aboriginal August. Solana fell nether $200, and the full crypto marketplace capitalization shed astir $170 cardinal successful 24 hours arsenic hazard aversion gripped investors.

CryptoQuant expert JA Maarturn pointed retired that this existent sell-off represents a important cleanup successful risk-on positioning. He estimated that $11.8 cardinal successful leveraged altcoin bets and $3.2 cardinal successful speculative Bitcoin positions person been flushed out, efficaciously resetting hazard appetite crossed the market

What next?

Despite this decline, analysts astatine Matrixport person argued that the derivatives markets are flashing mixed signals for crypto investors.

“Funding costs, leverage, and volumes crossed BTC, ETH, and SOL item some fragility and opportunity,” they noted, pointing to clustering signals astir cardinal on-chain thresholds that often precede large breakouts.

They added that Bitcoin is nearing the apex of a symmetrical triangle, a method enactment that antecedently preceded decisive moves.

However, with enactment traders already positioning adjacent the captious $110,000 zone, immoderate deviation from the seasonal volatility pattern, which typically ramps up successful mid-October, could spark an earlier breakout oregon deeper correction.

They concluded:

“Emerging patterns successful skew, unfastened interest, and volatility suggest the adjacent signifier of the rhythm whitethorn unfold precise otherwise from the last.”

The station Bitcoin sinks beneath $109k wiping $170 cardinal from crypto marketplace aft FOMC shock appeared archetypal connected CryptoSlate.