Why is Crypto Down Today? $630 Million Liquidated as Bitcoin Holds $120K and Solana Eyes HUGE Breakout

Core Insights - The crypto market experienced a significant liquidation wave, with over $630 million in positions wiped out on October 9, primarily affecting long bets [1][2] - The total crypto market cap saw a decline of nearly $200 billion, reverting valuations to mid-September levels after reaching a record of $4.27 trillion [2] - The selloff is attributed to macroeconomic factors, including Federal Reserve uncertainty, fading liquidity, and profit-taking [3] Market Performance - Bitcoin remains above $120,000, showing an 8% increase for the month, while Ethereum is just under $4,500 as traders take profits [2] - Mid-cap projects like Aptos (APT) and Sui (SUI) experienced declines of 3-6% as leveraged traders exited positions [4] - Despite the pullback, the total value locked (TVL) in DeFi protocols remains around $166 billion, indicating sustained long-term confidence [4] Market Structure - Analysts suggest that the market structure remains broadly bullish despite the recent correction, viewing it as a leverage flush rather than the beginning of a new downtrend [5] - A specific token is showing a strong technical setup, forming a "cup and handle" pattern on its monthly chart, indicating potential for future gains [5]