Historical trends suggest September tends to be bearish during bull market years, prompting analysts to urge caution
The cryptocurrency market faced renewed selling pressure over the past 24 hours, with Bitcoin (BTC) plunging to a seven-week low of $108,762, erasing recent gains. Analysts attribute the sell-off to a whale-induced flash crash and a sharp rotation of investor capital into Ethereum (ETH).
At the time of writing, Bitcoin was trading around $110,035, down 1.72 per cent, with a 24-hour trading volume of $85.75 billion. The world’s largest cryptocurrency swung between $108,762 and $112,946 during the day, according to CoinMarketCap data.
What’s leading the sell-off?
According to analysts at the CoinSwitch Markets Desk, the sharp sell-off was driven by a large whale who offloaded around 24,000 BTC. “This triggered a flash crash and caused more than $550 million in leveraged positions to be liquidated, with Bitcoin falling from over $117,000 to nearly $110,000.”
At the same time, long-term institutional accumulation continues to tighten supply. Crypto treasury companies now collectively hold close to 1 million BTC, while exchange reserves have dropped below 15 per cent — levels not seen since 2018. CoinSwitch analysts noted that institutional confidence remains strong, with long-term price forecasts for Bitcoin ranging between $200,000 and $250,000 by 2026. However, they caution that market cycles may stretch beyond historical norms.
Riya Sehgal, research analyst at Delta Exchange, on the other hand, believes the correction was driven by a massive long squeeze that triggered around $950 million in total liquidations. She observed that Bitcoin remains under selling pressure in the $108,500 to $112,000 range.
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Despite the volatility, Sehgal believes institutional demand remains resilient. “Bitcoin exchange-traded funds (ETFs) saw $219 million in inflows, while Ethereum ETFs attracted $444 million — signaling sustained investor confidence despite near-term price swings.”
Ethereum falls 11% from its peak
Ethereum has also seen a significant correction. After briefly touching $4,678, boosted by institutional interest and ETF inflows, ETH dropped to $4,411 at last check, down 4.69 per cent in the past 24 hours. Trading volume stood at $63.17 billion. The cryptocurrency is now nearly 11 per cent below its August 25 peak of $4,953.
Analysts suggest this pullback reflects profit-taking amid heightened volatility. Elevated short interest in derivatives markets points to near-term bearish sentiment, even as long-term fundamentals remain strong. Like Bitcoin, Ethereum is also experiencing growing interest from corporate treasuries, further tightening available supply.
Historical trends suggest September tends to be bearish during bull market years, prompting analysts to urge caution. Key support levels to watch are $105,000 for Bitcoin and $4,300 for Ethereum.
Altcoins see pullback
The broader altcoin market followed Bitcoin and Ethereum lower, with major tokens like XRP, Solana, Dogecoin, and Cardano experiencing steep pullbacks. Binance Coin attempted to resist the selling pressure but struggled to hold gains.
Among notable decliners, Fartcoin dropped more than 20 per cent, making it the biggest loser of the day. Curve DAO Token followed with a 14 per cent plunge, while Pudgy Penguins fell 13.5 per cent. Dogwifhat and Jupiter each declined over 12 per cent, while Solana, OKB, Gala, Bonk, and Chainlink were all down by over 11 per cent.
Meanwhile, stablecoin-based assets like Tether Gold and PAX Gold posted minor gains but failed to meaningfully offset broader market losses.
As prices collapsed, over 205,000 traders were liquidated within 24 hours, resulting in more than $935 million in total losses, according to the CoinDCX Research Team.
Despite the turmoil, the industry continues to move forward with new developments. Bitmine acquired an additional 4,871 ETH worth over $21 million, reflecting continued institutional interest. Gemini launched a new credit card that offers up to 4 per cent cashback paid instantly in XRP.
Elsewhere, Pantera Capital announced plans to raise up to $1.25 billion to convert a public company into a Solana-focused investment firm. In another development, Canary has filed for a new spot ETF called the ‘America-Made Crypto ETF,’ which, analysts believe, will focus on digital assets developed, mined, or operated in the United States.
Further, regulatory discussions also continued, as the US SEC’s Crypto Task Force held meetings with Kraken to explore the tokenisation of traditional assets, trading systems, and the regulatory frameworks needed to support them.
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