The cryptocurrency market experienced a sharp decline on September 22. Bitcoin (BTC) fell from above $115,000 to a low of $111,800, while Ethereum (ETH) dropped from around $4,500 to $4,077.

Staggering Liquidation Scale

The derivatives market saw $1.7 billion in liquidations over 24 hours across the board, marking the highest figure for the year. Long positions accounted for the vast majority, at $1.617 billion.

Analyzing the Drop

The sell-off occurred as a "buy the rumor, sell the news" event following the anticipated Fed rate cut. Simultaneously, ETH "whales" dumped large holdings at elevated prices, cashing out approximately $2.15 billion and creating significant selling pressure.

Market Outlook

Analysts note that Bitcoin faces key resistance around $117,000; a breakout is crucial for determining the next directional move. Some predict market volatility could persist until mid-October, warning of potential seasonal weakness historically seen in September.

Summary

By 1912212.eth, Foresight News

In the early hours of September 22, BTC was still holding above $115,000. However, just a few hours later, around 2:00 AM UTC, it lost that support and began a sharp decline, breaking through several key psychological levels and touching a low of $111,800 before recovering to around $112,800 at the time of writing. ETH dropped from around $4,500 to a low of $4,077, currently trading back above $4,100. SOL fell to a low of $214.5, with many altcoins also experiencing broad-based declines.

According to Coinglass data, total open interest liquidations across all exchanges reached $1.7 billion in 24 hours, a yearly high. Long position liquidations accounted for $1.617 billion. The single largest liquidation order occurred on the BTC-USDT pair on OKX, valued at $12.74 million.

The downturn comes just days after Fed Chair Powell announced a 25 basis point rate cut, raising questions: Is the bull market pausing, or is a broader shift underway?

ETH Whale Sell-Off and Market Digests Fed Decision

Smart whales often take profits when market sentiment is frothy and near perceived local tops. Data analyst Murphy, citing Glassnode charts, noted that on September 18, whales holding 1,000 to 10,000 ETH cashed out $1.5 billion in a single day. Combined with selling from whales holding 10,000-100,000 ETH and those with over 100,000 ETH, the total sell-off reached approximately $2.15 billion.

A similar large-scale cash-out occurred in July when ETH broke above $3,500, but prices held steady then due to aggressive buying from US treasury companies.

Notably, treasury company Bitmine now holds 2.151 million ETH ($9 billion) with an average cost basis of $3,949. Although the company has stated it does not plan to sell its holdings short-term, market watchers are questioning the potential impact on its stock price and future buying capacity if ETH falls below its cost basis.

With ETH showing weakness, altcoin performance was predictably poor, with significant declines across the board except for some tokens within the BNB Chain ecosystem and decentralized derivatives exchanges.

Furthermore, since early September, the market had widely priced in a 25-basis-point Fed rate cut. BTC had rallied unevenly from around $107,000, touching $117,900 following the Fed's announcement. The subsequent pullback aligns with a classic "sell the news" event.

Subsequent Market Direction Analysis

Glassnode previously analyzed that Bitcoin's Cost Basis Distribution (CBD) heatmap indicates supply concentration around $117,000, forming a key resistance zone. A break above this level could open a path toward further supply reduction, while failure to break through might prolong consolidation or trigger a deeper correction.

Matrixport released a market view stating, "For some time, long positions in Ethereum have offered a superior risk-reward profile. However, as the price enters a rapid ascent phase, technical indicators often fail. Particularly when weekly stochastic indicators hit extreme highs and show signs of reversal, investor caution becomes critical for locking in profits." They added, "In recent months, Ethereum treasury companies have been the primary buyers. As their net assets shrink, their ability to inject additional funds may become constrained. In this context, strict risk management appears more prudent."

Weiss Crypto tweeted that the full effect of the Fed's rate cut might not be felt until mid-December. Their models suggest sideways volatility could continue for another 30 to 60 days, with a potential significant bottom forming around October 17. Notably, Weiss Crypto recently predicted a local top around September 20.

Historical data shows BTC has often experienced declines in September. Although today saw a minor flash crash, BTC's monthly chart remains slightly positive for now. If the September "jinx" of negative returns holds true, BTC could face a further correction of over 3% in the remaining week of the month.

The cryptocurrency market experienced a sharp decline on September 22. Bitcoin (BTC) fell from above $115,000 to a low of $111,800, while Ethereum (ETH) dropped from around $4,500 to $4,077.

Staggering Liquidation Scale

The derivatives market saw $1.7 billion in liquidations over 24 hours across the board, marking the highest figure for the year. Long positions accounted for the vast majority, at $1.617 billion.

Analyzing the Drop

The sell-off occurred as a "buy the rumor, sell the news" event following the anticipated Fed rate cut. Simultaneously, ETH "whales" dumped large holdings at elevated prices, cashing out approximately $2.15 billion and creating significant selling pressure.

Market Outlook

Analysts note that Bitcoin faces key resistance around $117,000; a breakout is crucial for determining the next directional move. Some predict market volatility could persist until mid-October, warning of potential seasonal weakness historically seen in September.

Summary

By 1912212.eth, Foresight News

In the early hours of September 22, BTC was still holding above $115,000. However, just a few hours later, around 2:00 AM UTC, it lost that support and began a sharp decline, breaking through several key psychological levels and touching a low of $111,800 before recovering to around $112,800 at the time of writing. ETH dropped from around $4,500 to a low of $4,077, currently trading back above $4,100. SOL fell to a low of $214.5, with many altcoins also experiencing broad-based declines.

According to Coinglass data, total open interest liquidations across all exchanges reached $1.7 billion in 24 hours, a yearly high. Long position liquidations accounted for $1.617 billion. The single largest liquidation order occurred on the BTC-USDT pair on OKX, valued at $12.74 million.

The downturn comes just days after Fed Chair Powell announced a 25 basis point rate cut, raising questions: Is the bull market pausing, or is a broader shift underway?

ETH Whale Sell-Off and Market Digests Fed Decision

Smart whales often take profits when market sentiment is frothy and near perceived local tops. Data analyst Murphy, citing Glassnode charts, noted that on September 18, whales holding 1,000 to 10,000 ETH cashed out $1.5 billion in a single day. Combined with selling from whales holding 10,000-100,000 ETH and those with over 100,000 ETH, the total sell-off reached approximately $2.15 billion.

A similar large-scale cash-out occurred in July when ETH broke above $3,500, but prices held steady then due to aggressive buying from US treasury companies.

Notably, treasury company Bitmine now holds 2.151 million ETH ($9 billion) with an average cost basis of $3,949. Although the company has stated it does not plan to sell its holdings short-term, market watchers are questioning the potential impact on its stock price and future buying capacity if ETH falls below its cost basis.

With ETH showing weakness, altcoin performance was predictably poor, with significant declines across the board except for some tokens within the BNB Chain ecosystem and decentralized derivatives exchanges.

Furthermore, since early September, the market had widely priced in a 25-basis-point Fed rate cut. BTC had rallied unevenly from around $107,000, touching $117,900 following the Fed's announcement. The subsequent pullback aligns with a classic "sell the news" event.

Subsequent Market Direction Analysis

Glassnode previously analyzed that Bitcoin's Cost Basis Distribution (CBD) heatmap indicates supply concentration around $117,000, forming a key resistance zone. A break above this level could open a path toward further supply reduction, while failure to break through might prolong consolidation or trigger a deeper correction.

Matrixport released a market view stating, "For some time, long positions in Ethereum have offered a superior risk-reward profile. However, as the price enters a rapid ascent phase, technical indicators often fail. Particularly when weekly stochastic indicators hit extreme highs and show signs of reversal, investor caution becomes critical for locking in profits." They added, "In recent months, Ethereum treasury companies have been the primary buyers. As their net assets shrink, their ability to inject additional funds may become constrained. In this context, strict risk management appears more prudent."

Weiss Crypto tweeted that the full effect of the Fed's rate cut might not be felt until mid-December. Their models suggest sideways volatility could continue for another 30 to 60 days, with a potential significant bottom forming around October 17. Notably, Weiss Crypto recently predicted a local top around September 20.

Historical data shows BTC has often experienced declines in September. Although today saw a minor flash crash, BTC's monthly chart remains slightly positive for now. If the September "jinx" of negative returns holds true, BTC could face a further correction of over 3% in the remaining week of the month.