1.7 billion yuan in stocks are in shock, the market welcomes Black Monday

# BTC and ETH Plunge Sharply; Market Questions Whether Bull Market Pauses or Trend Shifts  

Written by 1912212.eth, Foresight News  

In the early morning of September 22, BTC was still holding above $115,000. However, only a few hours later, around 2:00 a.m. today, BTC fell below $115,000 and then dropped sharply, breaking through multiple integer-level support levels in succession. It once plummeted to $111,800 and has now rebounded to $112,800. ETH, which was around $4,500 earlier, dipped to $4,077 at one point and has since recovered to above $4,100. SOL also fell to $214.5 at its lowest, while most altcoins suffered widespread declines.  

Data from Coinglass shows that the total liquidations of open interest across the market reached $1.7 billion in 24 hours, a new high for the year. Among this, long-position liquidations accounted for $1.617 billion, with the largest single liquidation occurring in the BTC-USDT pair on OKX, valued at $12.74 million.  

It has only been a few days since Federal Reserve Chair Powell announced a 25-basis-point interest rate cut, yet the market has seen such a sharp drop. Is this a pause in the bull market, or has the market quietly shifted direction?  

## ETH Whales Sell Off Heavily; Market Digests Fed Rate Cut Optimism  

Astute whales always take profits and close positions when market sentiment is fervent and the market is in a phased top range. Data analyst Murphy, citing Glassnode charts, stated that on September 18, whales holding 1,000–10,000 ETH cashed out $1.5 billion in a single day. When combined with whales holding 10,000–100,000 ETH and those holding over 100,000 ETH, the total cash-out volume reached $2.15 billion.  

Back in July this year, when ETH broke through $3,500, a large-scale cash-out also occurred. However, prices did not decline at that time because some U.S. Digital Asset Treasury (DAT) companies actively bought up ETH.  

Notably, DAT company Bitmine currently holds 2.151 million ETH (valued at $9 billion) with an average cost of $3,949. Although the company has clearly stated that it will not sell its holdings in the short term, the market is questioning how its stock price will perform and whether its ability to increase holdings will be impacted if ETH falls below this cost price.  

As ETH shows lackluster performance, the performance of altcoins is predictable. Except for some BNB Chain ecosystem projects and DEX derivatives, most altcoins have recorded significant declines.  

Additionally, since early September, the market has widely expected the Federal Reserve to cut interest rates by 25 basis points. As a result, BTC fluctuated upward from $107,000 and even touched $117,900 after the Fed’s decision was announced. Often, after positive news is fully priced in, a market correction follows.  

## Analysis of Future Market Direction  

Glassnode released an analysis earlier, stating that Bitcoin’s Cost Basis Distribution (CBD) heatmap shows that supply is concentrated around $117,000, forming a key resistance zone. Breaking through this level may open a channel for further supply reduction; if it fails to break through, it may prolong consolidation or trigger a correction.  

Matrixport issued a market view, saying, “Over the past period, the risk-reward ratio for Ethereum long positions has been more favorable. However, as the market enters a phase of rapid surge, technical indicators often fail. Especially when the weekly stochastic indicator hits an extremely high level and reverses, whether investors exercise caution often determines whether they can lock in profits. In the past few months, Ethereum DAT companies have been the main buyers; as their net assets shrink, their ability to inject additional funds may be restricted. Against this backdrop, strict risk management is a more prudent approach.”  

Weiss Crypto tweeted that the effects of the Federal Reserve’s interest rate cut will not truly manifest until mid-December. Its model suggests that sideways consolidation may continue for another 30 to 60 days, and a clear market bottom may emerge around October 17. Notably, Weiss Crypto recently predicted that the market’s phased top would occur around September 20.  

Historical data shows that BTC often declines in September. Although a slight plunge occurred today, BTC’s monthly candlestick still remains a small bullish candle so far. If the “myth” of September monthly declines for BTC comes true, BTC may face a further correction of over 3% in the next week or so.  

## Disclaimer  

The market is risky, and investment requires caution. This article does not constitute investment advice. Users should consider whether any opinion, view, or conclusion in this article is consistent with their specific circumstances. Any investment made based on this article shall be at the user’s own risk.