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Crypto Bulls Face Second-Largest Liquidation Day in October

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Originally published on: October 24, 2024

Crypto enthusiasts who predicted a continued upward trend in the market experienced the second-largest day of liquidations in October. Following a drop in Bitcoin’s price that dragged down major cryptocurrencies, the market has since stabilized.

On October 23, total crypto liquidations amounted to $261 million, with more than $203.5 million stemming from long bets. This figure ranks second only to the $450.8 million in crypto longs liquidated on October 1 when Bitcoin dipped by approximately 5%, according to data from CoinGlass.

Ether saw its largest liquidation day, with over $77 million wiped out in the past 24 hours, followed by around $58.3 million in Bitcoin call options.

The recent liquidations occurred as some traders remained hopeful that Bitcoin could maintain its upward trajectory, especially as its price approached $70,000 on October 21 — marking a three-month high. However, the momentum could not be sustained, leading to a drop to $65,500 on October 23 before recovering to $67,386, reflecting a 0.5% increase over 24 hours.

Crypto liquidations within the past 24 hours reveal that altcoin call options were among the most heavily impacted. Source: CoinGlass

Conversely, ETH experienced the largest decline among the top 10 cryptocurrencies, falling by 1.7% to $2,552 on the day, after peaking at $2,620. The cryptocurrency had reached a two-month high of $2,750 on October 21 before its downward trend.

On-chain data indicates that Ethereum’s high transaction fees are discouraging activity on the blockchain, potentially reducing the demand for ETH staking and dampening investor confidence.

Despite Bitcoin’s volatile performance, institutional investors remained undeterred, with 11 US-based spot BTC exchange-traded funds (ETFs) collectively witnessing a net inflow on October 23, according to CoinGlass.

The funds received a total of $198.5 million in net inflows, primarily driven by a $323.6 million influx into BlackRock’s iShares Bitcoin Trust ETF. This was partially offset by net outflows of $99 million from the ARK 21Shares Bitcoin ETF and $25.2 million from the Bitwise Bitcoin ETF.

Following a seven-day inflow streak from October 11 to October 21 that saw almost $2.7 billion added to the funds, an $87.9 million net outflow on October 22 interrupted this trend.

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