Leveraged Longs Wiped Out as Bitcoin Breaks $90K Support
Bitcoin and Ethereum continue to struggle amid one of the sharpest drawdowns of the year. Nearly $1 trillion in market capitalization has evaporated since early October, raising fears that the current correction could evolve into a broader market reset.
Massive Market Losses and Rising Fear
The total crypto market cap has shrunk by roughly $230 billion per week over the past month. Bitcoin is now trading near $86,000, down 20% in three weeks, while Ethereum has fallen below $2,800. Both assets are struggling to find meaningful support as sentiment deteriorates.
The latest jobs report added to macro uncertainty, with 119,000 new positions in September lowering expectations for a Federal Reserve rate cut to just 35%. With several U.S. data releases delayed, investors remain cautious. The result is heightened fear and declining risk appetite across digital assets.
Leveraged Traders Face Steep Losses
Coinglass data shows over $957 million in positions liquidated within 24 hours, with 88% coming from longs. Bitcoin’s intraday drop to $85,300 confirmed weak buying demand. Despite this, Binance’s BTC/USDT perpetual futures still show an 80% long skew, suggesting traders remain overexposed.
Ethereum has mirrored Bitcoin’s movement, slipping 0.35% intraday and falling back toward its late-Q2 trading range. High volatility and thin liquidity have amplified losses, leaving over-leveraged traders vulnerable to further downside.
Macro Headwinds Intensify
Hopes for monetary easing have faded sharply. The probability of a rate cut that stood near 99% a month ago has fallen to around 35%. The Fear and Greed Index dropped to 11, its lowest level in over a year, reflecting the depth of market anxiety.
Outlook
While short-term traders may view current levels as potential accumulation zones, the absence of clear catalysts and the weight of macro pressures make a strong recovery unlikely in the near term. For now, both Bitcoin and Ethereum remain vulnerable, with the risk of deeper pullbacks if selling pressure persists.
