Crypto market plunges as liquidations and macro risks trigger sell-off

Saturday 27 September 2025 - 07:50

By: Dakir Madiha

Crypto market plunges as liquidations and macro risks trigger sell-off

The global cryptocurrency market faced a sharp downturn today, with total capitalization falling by more than 2 percent in 24 hours. Bitcoin slipped below the 110,000 dollar mark, underscoring mounting pressure across digital assets.

A major factor behind the decline is the wave of liquidations in leveraged positions. Over 1.2 billion dollars in long bets were wiped out within a single day as cascading sell orders accelerated losses. Heavy reliance on leverage amplified the downward move, leaving traders exposed to rapid market swings.

Options expiry further intensified volatility. Roughly 22 billion dollars in Bitcoin and Ethereum contracts reached expiration, prompting large holders to push markets toward levels most favorable for options sellers.

Macroeconomic signals also weighed heavily. Strong U.S. economic data has reduced expectations for imminent rate cuts, limiting appeal for risk assets. Concerns about potential U.S. fiscal gridlock and government shutdowns deepened the risk-averse sentiment.

Institutional support is showing cracks as well. Exchange-traded funds tied to Bitcoin and Ethereum reported net outflows, weakening one of the market’s most consistent demand drivers.

Altcoins bore the brunt of the slide. Ethereum, Solana, XRP, and BNB fell between 3 and 5 percent, with XRP retreating more than 4 percent after recent gains.

Analysts note that part of the correction may be “healthy,” clearing out speculative leverage. Still, if Bitcoin falls below 108,700 dollars or approaches 105,000 dollars, selling pressure could intensify further.

Today’s drop reflects not a single failure but a combination of leveraged excess, expiring contracts, wavering institutional demand, and macroeconomic headwinds. The moves signal a market still vulnerable to sharp swings as traders navigate uncertainty.