Bitcoin Slides Below $109K as Nearly $1B in Crypto Liquidations Rock Market

Bitcoin fell sharply on Friday, dipping below $109,000 as traders turned cautious ahead of the U.S. core PCE inflation report. The broader crypto market mirrored the downturn, with Ether and other major altcoins posting double-digit weekly losses.

Spot bitcoin exchange-traded products in the U.S. saw roughly $258 million in net outflows on September 25, while spot ether products logged about $251 million in their fourth straight day of withdrawals. Derivatives markets bore the brunt of the retreat, with nearly $1 billion in positions liquidated over 24 hours—most of them long bets—signaling widespread forced deleveraging. More than 225,000 traders were stopped out, including a single $19.3 million ETH-USDT trade.

The sell-off followed a post-FOMC market shakeout that pushed bitcoin through near-term support, briefly touching $108,652 before stabilizing. Despite the pullback, BTC remains up about 4.5% for September, with October historically showing favorable seasonality.

Large holders have been net sellers since late August, and long-term investors are locking in profits, adding pressure to spot prices even as ETF flows swing from day to day. Traders are now watching the upcoming core PCE price index—the Federal Reserve’s preferred inflation gauge—for clues on interest-rate expectations and market sentiment.

Analysts note that while long-term trends still lean bullish, the market remains fragile. A sustained rebound may depend on steady ETF inflows and bitcoin reclaiming the $113,500–$116,000 range with strong volume. Until then, many caution that preserving capital is wiser than chasing upside.