Cryptocurrencies shed $250B in value this week, CoinMarketCap data shows

The cryptocurrency market faced a significant decline, losing $250 billion in market capitalization, dropping from $4.03 trillion to $3.78 trillion within a week due to leveraged position unwinding and a major options expiration event.

Major cryptocurrencies Bitcoin and Ethereum experienced notable losses, with Bitcoin decreasing by 5.2% and Ethereum by 9.7%.

The sell-off was intensified by the liquidation of over $3 billion in long positions, while a record quarterly options expiration saw over $22.3 billion in options expire, including substantial amounts tied to Bitcoin and Ethereum.

At the end of trading, Bitcoin was priced at $109,486.72, down 0.2%, and Ethereum was at $3,998.86, down 0.9%.

Cryptocurrency Market Update: Significant Decline and Market Movements

The cryptocurrency market experienced a challenging week, witnessing a substantial decrease of $250 billion in market capitalization. This decline can be attributed to the unwinding of leveraged positions and a significant options expiration event that took place on Friday.

According to data from CoinMarketCap, the overall market capitalization of cryptocurrencies dropped from $4.03 trillion on September 19 to $3.78 trillion by September 26.

The two most prominent cryptocurrencies—Bitcoin (BTC-USD) and Ethereum (ETH-USD)—also faced considerable losses during this period. Bitcoin saw a decline of 5.2%, while Ethereum plummeted by 9.7%.

This sell-off was exacerbated by the liquidation of over $3 billion in long positions across various exchanges, as reported by Bloomberg News, referencing data from Coinglass.

In addition to this, Friday marked one of the most significant quarterly expiration events on record for cryptocurrency options. Data from the crypto options and futures exchange, Deribit, revealed that more than $22.3 billion in options expired on that day. This included Bitcoin options valued at approximately $17.06 billion and Ethereum options amounting to around $5.20 billion.

At the close of trading, Bitcoin (BTC-USD) was down by 0.2%, priced at $109,486.72, while Ethereum (ETH-USD) experienced a decline of 0.9%, trading at $3,998.86.

For those interested in cryptocurrency-related exchange-traded funds, here are some notable options: IBIT, ARKB, GBTC, BRRR, BTCO, HODL, BTCW, FBTC, BITB, EZBC, BITQ, DAPP, BKCH, BLOK, CRPT, and IBLC.