TLDRThe crypto market lost $166 billion in 24 hours, triggering $818 million in liquidationsBitcoin fell 3.2% to $109,826, dropping below the $110,000 support levelFartcoin (FARTCOIN) plunged 17% to $0.78, marking a four-month lowNearly $900 million in overleveraged positions were liquidated across cryptocurrenciesEther traders faced the highest losses with $320 million in forced unwinds, followed by Bitcoin at $277 millionThe cryptocurrency market experienced a major downturn in the last 24 hours, with $166 billion wiped from the total market capitalization. This sell-off pushed Bitcoin below $110,000 and sent Fartcoin to a four-month low.Bitcoin price fell 3.2% over the past day, trading at $109,826. This marks the first time in a month that the cryptocurrency has dropped below the $110,000 threshold.Bitcoin Price on CoinGeckoThe total crypto market cap now sits at $3.73 trillion, a critical support level that could determine whether the market stabilizes or continues to decline.Fartcoin (FARTCOIN) was hit particularly hard, plummeting 17% to $0.78. This represents its lowest price point in four months after losing the $0.80 support level.The market decline triggered $818 million in long liquidations, indicating many traders had bet on continued price increases. This sudden reversal caught many investors off guard.Bitcoin is now approaching the $108,000 support level, which has historically been a strong bounce point. If this level holds, it could help stabilize prices and potentially pave the way for a recovery back above $110,000.Market Liquidations Reach Nearly $900 MillionThe market correction resulted in nearly $900 million in liquidations, primarily affecting overleveraged positions. These forced unwinds have reset market expectations and increased volatility.Ether traders bore the brunt of these liquidations with $320 million in losses, followed by Bitcoin at $277 million. Other cryptocurrencies like Solana, XRP, and Dogecoin saw a combined $90 million in liquidations.Market volatility has surged in the aftermath of this correction. Daily Bitcoin volatility jumped from 15% to 38%, while Ether’s volatility spiked from 41% to 70%.This increased volatility suggests traders now view Ether as a more fragile investment at present. Its rallies tend to attract heavier leverage, but when the market turns, these positions get forced out faster, creating sharper price movements in both directions.Key Support Levels to WatchFor Fartcoin, the $0.73 level now emerges as a critical support zone. This price point previously served as a rebound area in April. If FARTCOIN can hold this level, it may be able to reclaim $0.80 as support and potentially target $0.87 as the next resistance.However, if FARTCOIN fails to maintain support at $0.73, it could extend its decline to $0.67, which would establish a new multi-month low and increase investor losses.The total crypto market cap remains above the $3.73 trillion support zone, giving bulls a chance to regain control. If low prices attract fresh capital, the market could push toward $3.81 trillion.Options markets have turned defensive, with a stronger preference for puts for both major cryptocurrencies. This represents the strongest defensive positioning in two weeks.The implied odds for Bitcoin to revisit $100,000 by the end of September have risen to 35% from 20% last week. Meanwhile, Ether is now seen with a 55% chance of retesting $4,000.With upcoming economic data including GDP figures due August 28 and U.S. unemployment numbers in early September, traders are preparing for continued market volatility.The market downturn comes as B Strategy plans to launch a U.S.-listed company as a $1 billion corporate BNB treasury and investment vehicle. Unlike yield-focused treasuries, it will fund core tech development, grants, and community initiatives.Meanwhile, Sharps Technology stock surged 96% on Monday after announcing a $400 million plan to build a Solana-based digital asset treasury. The rally was fueled by a $50 million SOL token deal with the Solana Foundation.The post Why is The Crypto Down Today? appeared first on Blockonomi.