BTC $83,576 
ETH $2,578 
USDT $0.9997 
BNB $771.40 
XRP $1.44 
USDC $0.9997 
SOL $117.11 
TRX $0.3355 
FIGR_HELOC $1.04 
ZEC $1,340 Why Are Bitcoin, Ethereum And XRP Prices Crashing Today?
Bitcoin, Ethereum and XRP fell as leveraged long positions were liquidated, with analysts calling the move a leverage flush rather than a confirmed trend change.
Key takeaways
- Longs took the hit. About $554.8 million in positions were closed over 24 hours, including $487 million in longs.
- Bitcoin fell below $84,000. One report said Bitcoin dropped $1,600 in about 15 minutes and traded near $84,195.
- Ethereum broke a key trendline. An analyst said ETH lost support at $2,690 to $2,700 and fell toward $2,560.
What happened
Bitcoin, Ethereum and XRP fell on Oct. 7 as the broader crypto market dropped. CoinGecko data showed Bitcoin at $82,855.50, down 4.3%, Ethereum at $2,564.48, down 5.8%, and XRP at $1.42, down 6.3%. The total crypto market cap dropped 3.8% to $2.925 trillion.
CoinGlass data put total forced closures at approximately $554.8 million over 24 hours, including $487 million in longs. Within one hour, $403.58 million in long liquidations represented 97% of the $415.33 million total. Dan Khus of LVRG Research called it a leverage flush rather than a downward trend.
Why it matters
Falling prices forced exchanges to close bullish leveraged positions, adding sell orders during the decline. One-hour liquidations were about 0.27% of total open interest. Futures trading volume rose 16% to $182.85 billion while open interest slipped just 1% to $152.60 billion.
Analysts pointed to technical levels. One analyst said Bitcoin closed three weekly candles and a monthly candle above its 50-week moving average and is holding its May high near $83,000. An analyst said ETH lost support at $2,690 to $2,700 and that the reaction at $2,550 to $2,560 will be important. XRP at $1.44 traded inside its short-term support zone of $1.32 to $1.49.
Tom Lee said BitMine will stop buying ETH once it holds 5% of Ethereum's total supply.
What the data shows
Additional data showed losses of 8.5% for Cardano and 8.2% for Dogecoin. The estimated $115.5 billion reduction measures token valuations rather than cash withdrawn.
Background
CoinDesk linked Bitcoin's fall below $84,000 to Iranian attacks on tankers in the Strait of Hormuz, with Brent crude above $101 a barrel. Reuters reported at least seven tanker incidents, with the Kazimah III struck on Oct. 1 and the Lipsi on Oct. 4.
What is still unclear
- The cause of the crypto flash crash itself has not been confirmed.
- The speed of the drop has drawn comparisons to the October 10 flash crash, which is three days from its anniversary.
Questions readers ask
Why did Bitcoin, Ethereum and XRP fall?
Leveraged long positions were liquidated as prices dropped. CoinGlass data put total forced closures at about $554.8 million over 24 hours, including $487 million in longs.
How far did Bitcoin drop?
CoinGecko data showed Bitcoin at $82,855.50, down 4.3%. A separate report said Bitcoin fell $1,600 in about 15 minutes and traded near $84,195.
Is this a crypto trend change?
Dan Khus of LVRG Research called it a leverage flush rather than a downward trend. The cause of the flash crash has not been confirmed.
What Ethereum levels matter now?
An analyst said ETH lost support at $2,690 to $2,700 and that the reaction at $2,550 to $2,560 will be important.
