The cryptocurrency market is experiencing a severe downturn, with liquidations nearing $1.7 billion, causing significant price drops for major cryptocurrencies. Bitcoin has fallen below $112,000, marking a 12-day low, and Ethereum, Solana, and XRP are also facing steep losses. Analysts attribute the slump to profit booking and economic uncertainty, fueling concerns that digital currencies may be overvalued. The abrupt sell-off has wiped out $1.5 billion in bullish bets, leading to doubts about a potential October rally. Altcoins have not escaped the turmoil, with significant drops in the Meme sector and other cryptocurrencies, dragging the overall market cap below $4 trillion.