Bitcoin, Ethereum plunge as leveraged bets get liquidated: Explained
Crypto just had a wild week—nearly $300 billion was wiped from the market as major coins like Bitcoin and Ethereum took a hit.
The big trigger? Loads of leveraged bets got liquidated, sending prices down fast and reflecting how jumpy investors are feeling right now.
Bitcoin slid almost 5% toward $107,300
If you follow crypto, this is one of the sharpest drops in months. Bitcoin slid almost 5% toward $107,300, while Ethereum dropped 12%, dipping below $4,000 for the first time since June.
Over $500 million flowed out of Bitcoin and Ether ETFs on September 25 alone—so even big investors are getting cautious.
Panic in the market
A spike in fear (the Crypto Fear and Greed Index fell to 45) and more than $3 billion in futures long positions being wiped out fueled the panic.
Fewer companies have been buying crypto lately too, which hasn't helped demand.
On the bright side, recent Fed rate cuts and softer inflation gave prices a small bounce late in the week—but everyone's watching closely to see if this is just a reset or something bigger.