Why Did Crypto Drop Today? Crypto Liquidations, Bitcoin News Today, Jerome Powell Speech

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Gold surged to a new record high above $3,725, while Bitcoin slipped below $113,000, briefly touching $112,000 overnight. Measured in gold, Bitcoin is now down 18.5% from its recent record high and 16.5% below its 2021 peak. This divergence highlights Bitcoin’s current weakness relative to traditional safe-haven assets, signaling caution for traders. Market participants are closely watching whether Bitcoin can regain momentum or continue trailing gold in value.

Historically, a green September often signals multiple months of gains ahead. Bitcoin is currently up 4.3% with eight days left in the month. If $BTC holds above $109K until September closes, it could set the stage for a strong Q4 performance. Traders are watching key levels closely, as maintaining this momentum may continue the bullish streak, offering an optimistic outlook for Bitcoin and reinforcing long-term conviction despite short-term volatility.

The biggest Bitcoin liquidation since March wiped out over 95% of long positions, underscoring an overheated market. Such flushes are crucial, as over-leveraged longs must be cleared to reset price dynamics. This dramatic move, concentrated in key price zones, highlights the power of leverage in fueling volatility. Traders now watch closely, as the market appears poised to set the stage for Bitcoin’s next major move in Q4, creating new opportunities.

In just 20 minutes, over $1 billion in Bitcoin longs were liquidated following a sharp price drop, highlighting the risks of low liquidity during Sunday night trading. This sudden washout sent shockwaves through the crypto market, but history suggests a rebound is likely as the US market opens, with buyers stepping in to capitalize on the dip. Traders are reminded to stay cautious during these volatile, low-volume periods. Bitcoin dipped below $115K, triggering over $100 million in long liquidations in minutes. Most of the liquidations clustered between $113K–$114K, highlighting how leverage concentrates around key price levels. These zones often act like magnets, fueling volatility. Despite the sudden washout, long-term Bitcoin holders remain unfazed, viewing the drop as temporary noise in the bigger market picture. Traders are reminded to manage risk, as leverage can amplify swings dramatically.