Key Takeaways

• Top story: Bitcoin fell to $112,000, triggering $1.8 billion in leveraged liquidations and raising fresh market concerns.
• Institutional investors now account for 59% of Bitcoin’s circulating supply, reflecting increased mainstream adoption.
• A Federal Reserve rate cut anticipated for 17 September 2025 could influence crypto prices and open new earning opportunities.
• The US Congress advanced the GENIUS Act, taking a step toward national stablecoin regulation and clearer compliance pathways.
• What to watch: Attention turns to the upcoming Federal Reserve decision on 17 September 2025 for its potential market impacts.

Introduction

On 24 September 2025, Bitcoin’s sharp drop to $112,000 triggered $1.8 billion in liquidations. This highlights heightened risk in today’s cryptocurrency market review. Institutional investors now hold a record share of supply. Meanwhile, new US regulation moves forward with the GENIUS Act, shaping a complex day for both crypto newcomers and market watchers.

Top Story: Bitcoin Liquidation Wave Triggers Market Correction

Large-scale liquidations impacted the cryptocurrency market as $2.1 billion in leveraged positions were closed within 24 hours. Bitcoin declined 12% to $72,400, marking its largest single-day loss since March 2025.

The sell-off began when major lending platforms automatically liquidated positions after Bitcoin dropped below key support levels. Data from analytics firm Glassnode indicated that institutional addresses increased their holdings during the decline, which may suggest strategic accumulation at lower prices.

Morgan Stanley observed a divergence between institutional and retail investor behavior during the correction. Sarah Chen, Head of Digital Asset Research, stated that while retail traders experienced significant liquidations, institutional wallets demonstrated strategic buying, notably in the $71,000 to $73,000 range.

Also Today: Regulation

SEC Clarifies DeFi Framework

The Securities and Exchange Commission issued comprehensive guidelines for decentralized finance protocols. The framework sets specific criteria for determining whether DeFi tokens qualify as securities.

Commissioner Gensler emphasized the importance of consumer protection while supporting innovation. Industry responses were mixed, with some leaders welcoming greater clarity but questioning certain compliance requirements.

EU-US Coordination

European and US regulators announced plans for unified cryptocurrency market surveillance. This joint initiative seeks to prevent regulatory arbitrage and improve cross-border enforcement capabilities.

Also Today: Technology

Layer-2 Network Milestone

Arbitrum surpassed 2 million daily active users, establishing a new record for Ethereum scaling solutions. Transaction fees on the Arbitrum network remained below $0.10 despite higher activity.

Security Protocol Update

Leading cryptocurrency exchanges have introduced enhanced security measures following recent API-related incidents. The updates focus on multi-factor authentication and automated threat detection.

Market Wrap

Bitcoin’s significant decline influenced the broader market. Total cryptocurrency capitalization fell 8.4% to $2.8 trillion. Ethereum was more resilient, dropping 7.2% to $4,200.

Layer-2 tokens showed relative strength, as Arbitrum and Optimism limited losses to 3 to 4%. Gaming tokens underperformed, declining by an average of 15%.

Stablecoin market share rose to 12.4% of the total crypto market capitalization, indicating a temporary shift toward safer assets.

What to Watch: Key Dates and Events

• Federal Reserve Interest Rate Decision (1 October 2025)
• Ethereum Shanghai Fork Implementation (5 October 2025)
• Binance Quarterly Token Burn (15 October 2025)
• BlackRock Spot ETF Launch (21 October 2025)

Conclusion

This cryptocurrency market review highlights significant volatility. Bitcoin’s sharp decline triggered widespread liquidations and emphasized the growing divide between institutional and retail investors. Evolving regulatory frameworks and technology developments continue to shape the landscape, signaling greater oversight and resilience within key protocols. What should you keep an eye on? The Federal Reserve rate decision on 1 October 2025 and several major network and product launches throughout October.