Bitcoin suddenly falls freely, what signal for the cryptocurrency market?

(Dan Tri) - Bitcoin price suddenly plummeted below 109,000 USD, causing the entire market to crash and wiping out billions of USD of investors.

Bitcoin suddenly fell "vertically" from the price range of 111,000 USD to around 109,000 USD, the lowest level in more than 3 weeks. Observers said this was a "sign of slowing down" after the US Federal Reserve (Fed) cut interest rates last week.

The crash of the cryptocurrency market also wiped out more than $1 billion of investors. Data from CoinGlass shows that in the past 24 hours, 256,000 cryptocurrency investors have had their contracts liquidated. The total value of liquidations reached $1.18 billion. Of this, $1.06 billion was liquidated because investors bet that the cryptocurrency would increase in price.

Bitcoin price suddenly dropped sharply (Photo: Binance).

According to Cointelegraph, the main reason for the cryptocurrency market turmoil is the information that the White House is preparing to cut jobs on a large scale, in case the government has to shut down.

This week, the US Office of Management and Budget sent out a memo asking agencies to prepare plans for staff cuts and furloughs if a spending bill is not passed next week.

Meanwhile, Ms. Rachael Lucas, analyst at BTC Markets, said that one of the reasons for the market crash was that capital flows from investment organizations had cooled down, causing short-term pressure on the market.

Markus Thielen, research director at 10x Research, pointed out that the Spent Output Profit Ratio (SOPR), which measures profit/loss, is at 1.01, which is a worrying sign as some bitcoin holders are starting to sell at a loss.

The plunge in bitcoin prices has also led to market panic. The Crypto Fear & Greed Index on September 26 fell 16 points, from an average of 44 points to a fear level of 18 points.

Previously in February, the index even dropped to 10 points, when investors were concerned about macroeconomic instability and escalating tariff wars.

However, history shows that the cryptocurrency market has often recovered quickly after each free fall of fear. The last time the index fell below 30, bitcoin was trading around $75,000, then skyrocketed to $83,000 in just a few days.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-bat-ngo-roi-tu-do-tin-hieu-gi-cho-thi-truong-tien-so-20250927112557119.htm