On September 22, 2025, the Bitcoin market experienced a significant fall, mainly due to the following reasons:

Macroeconomic Expectations and Federal Reserve Policy Adjustments
Despite the Federal Reserve's announcement of a rate cut last week, its cautious stance on future policy has weakened market expectations for continued aggressive rate cuts. The uncertainty regarding the interest rate path has led to a stronger dollar, an increase in risk aversion, and widespread pressure on risk assets, resulting in a sell-off of Bitcoin.

Technical breakout and high leverage liquidation
Bitcoin has failed to break through key resistance levels and has consecutively fallen below important technical support levels. High leverage is the core reason for amplifying the decline, and the price drop triggered a large-scale liquidation of long positions. In the past 24 hours, the total liquidation amount across the network reached 1.7 billion USD, and this chain liquidation further intensified the downtrend.

The funding situation and market sentiment are deteriorating.
The Bitcoin spot ETF is experiencing capital outflows, and institutional investors' willingness to seek short-term hedges is evident. Market panic is spreading, with the Fear and Greed Index returning to the "Fear" zone. Meanwhile, during periods of insufficient liquidity, even small selling pressures can trigger significant price fluctuations.

Negative events impact market confidence
A certain cryptocurrency exchange company has admitted to operating a Ponzi scheme, resulting in significant losses for many investors. This incident has somewhat undermined the overall market confidence in the industry.

The fall of altcoins and liquidity exhaustion
This fall is widespread, with mainstream altcoins like Ethereum experiencing even more significant declines. Panic has led to a comprehensive withdrawal of funds, resulting in a substantial evaporation of total market value in a single day. Market makers have withdrawn liquidity, widening the bid-ask spread, and a short-term liquidity crisis has emerged in the market.