The crypto market plunged into the red Monday, shedding more than $151 billion in 24 hours in one of the sharpest sell-offs of this bull cycle. Total market capitalization now stands at $3.88 trillion, according to SoSoValue.
A $1.7B Crypto Market Flush
Data from CoinGlass shows roughly $1.7 billion in leveraged bets were wiped out, hitting about 406,000 traders.
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Long positions accounted for the bulk of losses, with Ethereum alone erasing nearly $500 million. Bitcoin liquidations totaled about $280 million.
Source: CoinGlass
Because so many leveraged positions clustered at key price levels, even modest moves triggered a cascade of stop-losses, turning a pullback into a rout.
Bitcoin, Ethereum Lead the Slide
No major token was spared. Bitcoin dropped 2.5% below $113,000, while Ethereum sank nearly 7% to $4,100. XRP and Solana fell more than 7%, and Dogecoin and Hyperliquid (HYPE) tumbled over 10%, wiping out gains made after the Fed’s recent meeting.
Source: SoSoValue
The Fear & Greed Index slipped further into neutral-to-bearish territory, while the Altcoin Season Index fell to 64, signaling waning appetite for risk.
Traders See Opportunity, Not Collapse
Despite the turmoil, traders framed the sell-off as a classic leveraged flush rather than a market top.
“Now the market looks healthier, with better entry zones. Dips like this are part of the game, and they actually build the foundation for the next leg up,” wrote trader Tanaka.
Institutions Keep Buying
Despite the turmoil, demand from institutions remains resilient. Bitcoin spot ETFs recorded $886.65 million in net inflows last week, according to SoSoValue. The prior week saw more than double that amount at $2.34 billion.
Ethereum spot ETFs followed a similar trend, posting roughly $500 million in inflows for the second consecutive week.
Source: SoSoValue
This steady accumulation suggests institutional investors are buying the dip, reinforcing confidence that underlying demand for crypto remains intact.
Why It Matters
Shakeouts like this are a feature of bull markets: over-leveraged traders get washed out, selling pressure eases, and liquidity shifts back to stronger hands.
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The September sell-off was driven largely by leveraged liquidations. Around $1.7 billion in long positions were wiped out, creating a cascade effect that pushed Bitcoin, Ethereum, and other altcoins lower.
When traders borrow heavily to go long, even modest price dips can trigger stop-losses and margin calls. This forced selling accelerates the downturn, turning a pullback into a broader market sell-off.
Despite the turbulence, institutional demand remains strong. Bitcoin and Ethereum spot ETFs continued to record inflows, suggesting large investors are buying the dip rather than exiting.
Most analysts view the event as a healthy shakeout. By flushing out over-leveraged traders, the market often resets and becomes more stable for the next Bitcoin and Ethereum rally.
