Crypto Market Crash: Bitcoin, Ethereum, Solana Lead $1.1B Liquidation Wipeout

The cryptocurrency market faced a sharp downturn Thursday, with major tokens tumbling in U.S. afternoon trading. Bitcoin (BTC) dropped below $109,000, marking its weakest level in nearly a month after briefly holding above $109,486 earlier in the session. The decline puts BTC on track to retest late August and early September lows, when it bottomed just above $107,000. Analysts suggest this support zone may provide short-term relief as liquidity clusters appear in order books.

Ethereum (ETH) also faced heavy selling pressure, plunging 8% in 24 hours to near $3,800. The world’s second-largest cryptocurrency has now shed 22% since reaching record highs last month, erasing gains made since early August. Solana (SOL), recently trading above $250, slumped below $200, extending its losses with another 8% drop. The broader CoinDesk 20 Index fell 6%, highlighting widespread weakness across digital assets.

The sell-off sparked a wave of liquidations in the derivatives market. According to CoinGlass, over $1.1 billion worth of leveraged crypto positions were wiped out in just 24 hours. ETH led the bloodbath with $400 million in long positions liquidated, followed by BTC with $265 million. The forced unwinding added to downward momentum as leveraged traders were flushed from the market.

Crypto-related equities also took a hit. MicroStrategy (MSTR), the largest corporate holder of bitcoin, plunged nearly 10% to a five-month low, erasing its 2025 gains and slipping 1.5% year-to-date. Bitcoin mining firms such as MARA Holdings (MARA) and Riot Platforms (RIOT), along with ether-focused firms Bitmine (BMNR) and Sharplink Gaming (SBET), fell between 7–8%.

With crypto sentiment shaken, traders are watching whether BTC’s support near $107,000 holds. A decisive break below could trigger deeper corrections, while a rebound may provide temporary relief in this volatile market.