Ethereum Tumbled 9%, Bitcoin Declined 3%. Here's What Investors Need to Know About Sept. 22's Sharp Crypto Sell-Off.

Group 1 - Cryptocurrency prices experienced a significant decline on September 22, with Ethereum dropping 9% from nearly $4,500 to $4,075 before closing at $4,200, while Bitcoin fell 3%, leading the total crypto market cap to drop below $4 trillion [2] - Over $1.6 billion in crypto positions were liquidated within 24 hours, marking the largest liquidation event of the year, with Ethereum facing the most significant impact, losing over $500 million [3] - The volatility in cryptocurrency remains a concern, with Bitcoin showing less volatility compared to traditional stocks like Netflix, but Ethereum continues to exhibit higher volatility, as evidenced by recent price fluctuations [6][7] Group 2 - The use of leverage in cryptocurrency investments is a critical factor, as it allows investors to increase their positions using borrowed funds, but it also poses risks of liquidation if the market moves unfavorably [8] - The current levels of crypto leverage are comparable to those seen in 2021 and 2022, prior to the last bear market, indicating a potential risk for investors [9]