Originally published on: October 24, 2024
Crypto enthusiasts who believed in the market’s upward momentum experienced the second-largest day of liquidations in October. The market stabilized after Bitcoin’s decline dragged down the prices of major cryptocurrencies.
On October 23, total crypto liquidations reached $261 million, with over $203.5 million coming from long bets. This marks the second-highest liquidation amount compared to the $450.8 million in longs liquidated on October 1 when Bitcoin dropped by approximately 5%.
Ether saw its largest liquidation day, with over $77 million wiped out in the last 24 hours, followed by around $58.3 million in Bitcoin call options.
Traders were optimistic about Bitcoin’s potential to reach new heights as it approached $70,000 on October 21, its highest point in three months. However, the momentum faltered as the price plummeted to $65,500 on October 23 before rebounding to $67,386, a 0.5% increase over 24 hours.
Altcoin call options were among the major liquidations in the past 24 hours, indicating market volatility. Ethereum experienced the biggest loss among the top 10 cryptocurrencies, declining by 1.7% to $2,552.
Ethereum’s high transaction fees are discouraging activity on the blockchain, potentially dampening investor sentiment. Despite the fluctuations, institutional investors remained active, with 11 US-based spot BTC exchange-traded funds receiving a joint net inflow on October 23.
The US Bitcoin ETFs witnessed a seven-day inflow streak from October 11 to October 21, adding nearly $2.7 billion to the funds. However, a net outflow of $87.9 million on October 22 interrupted this trend.
Stay updated on the latest market trends and trading strategies by subscribing to the Markets Outlook newsletter. Get exclusive insights every Monday to make informed investment decisions.