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Crypto Market Extends Losses on Bitcoin ‘Exhaustion’ Signals Crypto Market Extends Losses on Bitcoin ‘Exhaustion’ Signals

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Crypto Market Extends Losses on Bitcoin ‘Exhaustion’ Signals – Crypto News

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Bitcoin is dropping further under $110,000, with analysts warning there’s a risk of deeper cooling.

The crypto market is ending the week on a softer note, with many of the top-20 assets by market cap posting double-digit losses on the week as prices drift lower into Friday.

Bitcoin (BTC) extended its decline today, Sept. 26, now trading at $109,750, down about 1% on the day, while Ethereum (ETH) is flat on the day, having slipped below $4,000 yesterday, according to data from The Defiant’s price page.

BTC 24-hour price chart. Source: CoinGecko

Among the top 10 altcoins aside from ETH, only TRON (TRX) is up today, with a modest 1% gain, pushing the price to $0.335. BNB dropped the most among large-caps in the past 24 hours, down 4% to $951, after hitting a new all-time high of $1,079 earlier this week as activity on the chain surges.

Top Gainers and Losers

Solana (SOL) is down 1.8% today and trading at $197, while SOL’s weekly losses now stand at over 18%. Meanwhile, XRP has dropped by 2.4% today, and now is trading at $2.76.

Among the top-100 crypto assets by market capitalization, Plasma’s XPL, which launched alongside the protocol’s mainnet beta yesterday, is by far the biggest gainer today, up 65% over the last 24 hours to trade above $1.20, while the next top-gainer, Mantle’s MNT, is up only 3% on the day.

Among the top losers today, Story (IP) extended its steep sell-off, dropping another 10% on Friday after double-digit losses the day before.

Liquidations, ETFs, and Macro

As Glassnode analysts noted in a Thursday research report, Bitcoin now “shows signs of exhaustion” following a brief rally after the September Federal Reserve meeting, adding that the short-term holder cost basis at $111,000 was the “key level to hold or risk deeper cooling.”

They explained that long-term holders “have already realized 3.4M BTC in profits,” underscoring the heavy distribution and maturity of the rally.

the-defiant

“Unless demand from institutions and holders aligns again, the risk of deeper cooling remains high, highlighting a macro structure that increasingly resembles exhaustion,” the analysts said.

That exhaustion has been compounded by liquidations and crypto exchange-traded fund (ETF) outflows as more than $869 million in leveraged positions were liquidated over the past 24 hours, according to Coinglass, following Monday’s record-breaking liquidations.

ETH is leading the wipeout at nearly $280 million, followed by BTC at $223 million and XPL at $69 million — with nearly equal amounts of longs and shorts — after an influx of the just-launched asset on centralized exchanges briefly pressured its price to $0.70 yesterday.

the-defiant
24-hour crypto liquidations. Source: Coinglass

Spot ETH ETFs saw net outflows for a fourth straight day, with $251 million leaving on Sept. 25, which is the largest daily outflow since early September, according to SoSoValue. Spot Bitcoin ETFs also posted $258 million in outflows on Thursday, reversing $241 million in net inflows from the previous day.

This investor repositioning comes as new personal-consumption expenditures (PCE) price index PCE data, the Fed’s preferred gauge, was released today by the U.S. Bureau of Economic Analysis. Core PCE inflation was 2.9%, in-line with expectations, while the August PCE price index rose 0.3% from last month, and marks a 2.7% increase from last August.

As analysts at Coinbase Institutional noted in a Friday report, this week’s data showed stronger-than-expected growth and steadier labor conditions, with markets now “appear to be pricing the shift: rates edged higher and the DXY approached a three-week high, tightening dollar liquidity at the margin while crypto pulled back.”

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