The cryptocurrency market erased more than $150 billion in value in a single day, plunging from $3.9 trillion to $3.75 trillion by the early hours of Friday, September 26.
Losses were broad-based, with the top five assets by market capitalization sliding deep into the red heading into the weekend. Sentiment soured sharply as the Fear and Greed Index fell to 32, signaling “fear”.
Bitcoin, which bore the brunt of the move, slipped below $110,000 to trade at $109,508, down 2.23% in 24 hours and wiping out more than $20 billion in market value.
Ethereum sank under $4,000 to $3,932, with its market cap tumbling 13.5% in seven days to $474.6 billion. XRP broke below $2.80 support, while BNB fell to $949, losing nearly 5% in a day, and Solana plunged almost 20% over the week to $196.
Macro forces are impacting crypto market
Macro forces magnified the decline. The Federal Reserve’s first rate cut of 2025 initially sparked optimism on September 17, but Chair Jerome Powell’s September 24 warning about a fragile labor market and persistent inflation reignited stagflation fears. Crypto, highly sensitive to liquidity swings, underperformed equities as traders pivoted back to traditional assets.
Liquidation pressure added fuel. More than $1.7 billion in leveraged crypto positions were wiped out on September 24–25, the largest liquidation cascade since December 2024. Most of those positions were long bets, amplifying downward momentum and forcing Bitcoin to break its $111,000 pivot point, a level that had held for much of September.
Technically, the market now sits at a precarious juncture. Bitcoin is testing $107,000 support, and a break could open the door to the psychologically critical $100,000 threshold. Ethereum, having lost $4,000, faces its next support at $3,750. XRP traders are watching whether the $2.71 floor, highlighted by analysts as a key Fibonacci retracement, can prevent a deeper breakdown.
For now, the market’s fate hinges on upcoming macro data. U.S. PMI numbers on September 30 and weekly jobless claims on October 2 will be pivotal in shaping expectations for another Fed cut. A weak print could reignite risk appetite and help crypto stabilize. A strong print could add more pressure, leaving traders to weigh whether this sell-off is a pause in a bull cycle or the start of a deeper correction.
