- Crypto traders saw $1.62 billion in long positions erased within 24 hours
- Bitcoin fell below $113,000 while Ethereum dropped nearly 7% to under $4,200
- The decline followed the Fed’s rate cut and was worsened by weak weekend liquidity and a break below key technical levels
Crypto traders faced a sharp reset on Monday. Coinglass data showed $1.62 billion in bullish bets wiped out within 24 hours. Bitcoin fell 2.3% to under $113,000 on Binance. Ethereum slid almost 7% to just under $4,200. The total crypto market value dropped about 4% day over day to roughly $3.9 trillion, according to CoinMarketCap. Stocks edged higher as the S&P 500 opened with a 0.15% gain, underscoring the split between risk assets.
Crypto traders weigh leverage unwinds, thin weekend liquidity, and a post-Fed reset
Leverage came off fast after the latest Federal Reserve rate decision. William Cai at Kaiko said the decline likely came from the unwinding of leverage. He also noted that weekends often show lower trading volumes. Thin liquidity can turn small moves into bigger swings. Crypto traders saw that dynamic play out into Monday’s early session. The move arrived after a month of muted price action. Bitcoin traded near $115,000 for much of late August and September. The range held even while the S&P 500 printed records. The Fed then cut rates on Wednesday. Prices popped at first. Bitcoin pushed toward almost $118,000. The lift faded over the weekend as positioning flipped. Crypto traders who chased the bounce now face tighter risk limits.
Crypto traders track key technicals as Bitcoin slips under the 50-day average
The 50-day moving average around $115,000 acted as a pivot. Gordon Grant at Bitwise called out a tone of bearish exhaustion. The dip below that average supports his view. Many short-term systems watch that level. Breaks can force hedging and reduce exposure. That feedback loop can add to downside pressure when liquidity is light. Price memory matters here. The push to almost $118,000 after the rate cut failed to hold. Sellers used that level to lighten up. Buyers grew more cautious as momentum faded. Ethereum’s near 7% drop signaled stress beyond Bitcoin. Cross-market risk appetite cooled as well. Yet stocks managed a small early gain, showing that flows did not line up across assets.
Macro drivers: rate cuts, inflation prints, and divergent risk signals
Bitcoin set a fresh all-time high in mid-August. That came after the Bureau of Labor Statistics posted better-than-expected inflation data. Many expected that trend to give the Fed room to cut. Rate cuts tend to push investors into risk, including crypto and equities. The decision finally came, but the path after has been uneven. Crypto traders are now sorting the balance between looser policy and tighter positioning. The S&P 500 rose 0.15% at the open on Monday. That small move contrasted with crypto’s drop. Macro policy changes do not hit every asset the same way. Stocks may price earnings and buybacks differently from tokens. Meanwhile, derivatives funding and perpetual swaps can amplify crypto swings. The mix of leverage, funding, and liquidity can turn macro news into sharp intraday action.
Supply narratives meet balance-sheet demand from digital asset treasuries
Another factor sits in the background. Some public firms hold Bitcoin as a treasury asset. These digital asset treasury strategies can influence float and sentiment. Grant suggested the market may question how much more these newer buyers can add. If balance-sheet demand slows, dips can stretch. Crypto traders then look for other marginal buyers. That includes systematic funds, option desks, and retail flows after headlines. Supply overhangs also matter. Unlocks, miner sales, and basis trades can change near-term pressure. When leverage comes off, basis narrows and carry trades adjust. That process takes time. Into weekends, fewer participants quote size. The result is larger gaps when stop orders trigger. Monday’s open then sets the tone for the week.
Conclusion
Crypto traders faced a fast shakeout as $1.62 billion in long liquidations hit within a day. Bitcoin fell 2.3% to below $113,000 and Ethereum slid almost 7% to just under $4,200. Total market value stood near $3.9 trillion, down about 4% day over day. The move followed a rate cut that first lifted prices to almost $118,000, before momentum faded. Thin weekend liquidity and leverage unwinds did the rest. The slip under the 50-day average near $115,000 added pressure and shaped sentiment. Stocks rose 0.15% at the open, showing a different read on risk. Positioning, treasury demand, and macro signals will guide the next leg as crypto traders watch liquidity and key levels.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
Featured image created by AI
