Red September crypto has returned as the market dropped sharply after a brutal week that erased $162 billion, sending total crypto capitalization below $3.8 trillion and flipping September into a monthly loss despite Bitcoin’s slight month-to-date edge.
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Market loss: $162 billion erased in seven days
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Market cap fell to $3.73 trillion; Bitcoin trades just above $109,000 while ETH slipped below $4,000.
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Leverage drove cascading liquidations: ~$500 million in ETH long liquidations; Altcoin Season Index dropped from 77 to 69.
Red September crypto: market drops $162B this week, Bitcoin near $109K — read analysis, charts, and outlook. Stay informed with COINOTAG.
What is Red September in crypto?
Red September refers to a recurring seasonal downturn where crypto markets often post negative returns in September. Historically, crypto has recorded losses in this month in eight of the last 11 years, typically tied to institutional rebalancing and end-of-quarter flows.
How did this week’s selloff unfold?
The week saw a brutal correction that removed roughly $162 billion from crypto valuations, erasing early-September gains. Total market capitalization slid to about $3.73 trillion, with Ethereum breaching $4,000 and triggering roughly $500 million in long liquidations on ETH alone.
Bitcoin held a small monthly gain but traded just above $109,000, leaving the market one tilt away from deeper September losses due to BTC’s ~67% dominance.
Why did Bitcoin and Ethereum move the way they did?
Bitcoin’s market structure shows an ascending channel but weakening momentum: the Squeeze Momentum flipped bearish and the ADX reads about 17, indicating a weak trend. Ethereum’s drop below $4,000 acted as a catalyst for broad deleveraging across derivatives books.
Short-term technicals—RSI around 42 and a descending-triangle formation on BTC shorter timeframes—suggest downside risk that could push September deeper into red if $108,000 is reached.
What role did leverage and altcoin flows play?
Leverage amplified the move. When ETH fell below $4,000, liquidation engines accelerated selling, cascading into smaller-cap tokens. The Altcoin Season Index fell from 77 to 69, reflecting a rotation out of altcoins and into perceived safety (or outright exits), which increased Bitcoin dominance regardless of inflows.
Frequently Asked Questions
How much value did the market lose this week?
The market erased approximately $162 billion in seven days, bringing total capitalization down to around $3.73 trillion. This wiped out early-September gains generated during a bullish two-week start.
What technical levels should traders watch for Bitcoin?
Watch support near $108,000–$109,000 and resistance at $115,000. A decisive break below $108,000 could confirm a measured move lower; failure to reclaim $115,000 after multiple attempts increases downside odds.
Key Takeaways
- Market impact: $162B wiped out; September now in the red.
- Leverage risk: ETH long liquidations (~$500M) accelerated contagion to altcoins.
- Event risk: Upcoming regulatory hearings may add volatility; historical data shows 3–5% declines ahead of major announcements.
Conclusion
Red September crypto has reasserted itself after a heavy weekly selloff that erased $162 billion and pushed the total market cap below $3.8 trillion. Technical indicators and rising event risk suggest a fragile outlook, though historical patterns and prediction markets leave room for an Uptober recovery. Follow COINOTAG for updates and data-driven coverage.
Author: COINOTAG — Published: 2025-09-25 — Updated: 2025-09-25
Disclaimer: The views expressed are for informational purposes only and do not constitute financial advice.
