Bitcoin briefly plunged to a seven-week low below $109,000, erasing all gains since the Fed Chair’s Jackson Hole speech last Friday.
About 200,000 traders have liquidated positions worth over $900 million in the past 24 hours following a dovish tone about a potential interest rate cut at the September Fed meeting.
According to CoinGlass, since Bitcoin hit an all-time high above $124,000 on August 14, about 200,000 traders have liquidated positions worth over $900 million in the past 24 hours.
Meanwhile, prominent gold investor Peter Schiff on Tuesday predicted that Bitcoin could plunge to $75,000, advising to sell it now and buy it when it hits a low.
September has historically been a weak month for crypto markets, with significant declines occurring in 2017 and 2021.
As a result of Bitcoin’s 2.8% daily decline, the total crypto market capitalization fell below $4 trillion, with nearly $200 billion flowing out. This led to the total market cap shrinking back to $3.84 trillion.
