The past day wasnt kind to the cryptocurrency markets, as bitcoin slumped below a crucial support level and dipped to a three-week low of under $109,000 yesterday.

Most altcoins crashed even harder, which is why the leveraged liquidations have skyrocketed to nearly $1 billion, according to CoinGlass.

It was less than a week ago when the primary cryptocurrency stood tall at $118,000 after the US Federal Reserve cut the interest rates for the first time this year. However, the asset failed to maintain its run and started to lose value rapidly.

Harrowing trading days were Monday (September 22) and Thursday (September 25). At first, BTC dumped from $115,500 to $112,000. It managed to recover some ground mid-week, but the bears initiated another leg down yesterday, which drove bitcoin further south to its lowest position since the start of the month at $108,600 (on Bitstamp).

Although it has recovered around a grand since then, BTC is still below $110,000, which is a crucial support level, according to Ali Martinez. The next one actually managed to hold the freefalls, which is set at $108,530.

As usual, many industry observers and commentators began speculating on the state of the correction. Some, such as Peter Schiff, called it the start of a bear market.

Crypto analysts remain more optimistic. Captain Fabrik, for instance, referred to the current retracement as a healthy one and predicted a surge to $140,000 as long as BTC can reclaim the $113,000 resistance.

Nevertheless, almost all altcoins followed bitcoin on the way south, posting massive losses. Ethereum is among the poorest performers as it lost the $4,000 support and slumped beneath $3,900 yesterday. XRP is deep in the red as well, dumping by 10% weekly and struggling to remain close to $2.80.

This enhanced volatility has harmed over-leveraged traders, as the total value of wrecked positions has shot up to almost $1 billion on a daily scale. More than 225,000 such market participants have been liquidated daily.

Liquidation Heat Map. Source: CoinGlass