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Crypto Market Liquidation and Price Volatility
On September 22, 2023, cryptocurrency prices saw significant declines, with Ethereum (CRYPTO: ETH) dropping 9% and Bitcoin (CRYPTO: BTC) falling 3%. Ethereum’s price plunged from approximately $4,500 to a low of $4,075, closing at $4,200. Overall, the crypto market cap slipped below $4 trillion, accompanied by over $1.6 billion in liquidations, marking the largest liquidation this year according to CoinGlass.
Liquidations heavily impacted Ethereum, which accounted for more than $500 million. This shift was exacerbated by high levels of leverage in the crypto market, nearing the levels seen before previous bear markets in late 2021 and early 2022. As of the second quarter of 2025, collateralized crypto lending exceeded $53 billion, a 27% increase from the previous quarter.
Despite recent volatility, Bitcoin and Ethereum have still posted substantial yearly gains, with Bitcoin up nearly 77% and Ethereum up 57% as of September 24, 2023. Potential upcoming market changes are anticipated due to macroeconomic factors and regulatory developments, which could lead to further price fluctuations.
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