The cryptocurrency markets had a tough day on Friday, as a wave of red swept across trading screens in a sharp selloff that reminded investors of the risks inherent in the sector.
Bitcoin (BTC) fell below $109,000, marking its lowest level in nearly a month. While still up 16% year-to-date, the rapid drop is raising investor concerns about a potential break of key support levels, last tested between late August and early September near $107,000.
Ethereum Takes the Hardest Hit
Ethereum (ETH) came under even heavier pressure, losing around 8% in 24 hours and dropping close to $3,800. This erased gains accumulated since early August and marked a 22% decline from last month’s peak, making Ethereum the leading driver of market liquidations with more than $400 million wiped out in open positions.
Solana and Altcoins Under Siege
Solana (SOL), which was trading above $250 just two weeks ago, sank below $200, losing another 8% on the day. Other tokens such as Ripple (XRP), BNB, and Dogecoin (DOGE) were also caught in the rout, with tens of millions in liquidations.
A Massive Wave of Liquidations Led by Ethereum
According to CoinGlass, more than $1.1 billion in leveraged positions were liquidated within 24 hours, with longs making up 90% of the total.
- The single largest liquidation occurred on Hyperliquid, an ETH-USD long position worth $29.1 million.
- Bybit led with the highest liquidation volume at $311 million, followed by Hyperliquid at $281 million, and Binance at $243 million.
This highlights the growing risks in decentralized exchanges (DEXs), especially as traders increasingly rely on identity-free, fully on-chain protocols.
Crypto-Linked Equities Take a Hit
The selloff didn’t stop at digital assets. Stocks tied to crypto also fell sharply:
- MicroStrategy (MSTR), the company led by Michael Saylor and the largest corporate holder of Bitcoin, plunged 10% on Thursday, hitting a five-month low and erasing all its 2025 gains.
- Bitcoin miners such as Marathon Holdings (MARA) and Riot Platforms (RIOT) declined alongside Ethereum-linked firms like Bitmain (BMNR) and Sharplink Gaming (SBET), both down between 7%–8%.
Looking Ahead
The current selloff puts Bitcoin on the verge of testing its crucial support near $107,000. If buy orders manage to absorb selling pressure, a short-term bounce could emerge. However, the scale of liquidations, especially in derivatives, underscores the fragility of the market and raises the risk that any rebound may be short-lived.
