Originally published on: October 24, 2024
The crypto market recently witnessed the second-biggest day of liquidations in October, leaving bulls feeling the heat as Bitcoin’s drop caused a ripple effect on major cryptocurrencies.
On October 23, total crypto liquidations amounted to a staggering $261 million, with a substantial $203.5 million stemming from long bets. This day ranks second only to October 1, when $450.8 million worth of crypto longs were liquidated as Bitcoin experienced a 5% drop, according to data from CoinGlass.
Ether (ETH) long bets took a major hit on this fateful day, with over $77 million liquidated within 24 hours, closely followed by around $58.3 million in Bitcoin call options.
The flurry of liquidations occurred as some traders remained hopeful that Bitcoin’s price surge to nearly $70,000 on October 21—its highest in three months—would continue, only to have their hopes dashed as it failed to maintain momentum and plummeted to a low of $65,500 on October 23. However, the price managed to recover to $67,386, showing a modest 0.5% increase within 24 hours.
The latest crypto liquidation data reveals that altcoin call options were among the top casualties. Additionally, Ethereum saw the most significant decline among the top 10 cryptocurrencies, dropping by 1.7% to $2,552 on the day from a peak of $2,620. Earlier in the week, Ethereum had reached a two-month high of $2,750 before this setback.
Recent onchain data highlights how Ethereum’s high transaction fees are dissuading activity on the blockchain, potentially diminishing the demand for ETH staking and dampening investor enthusiasm.
Despite the market turbulence, institutional investors remained undeterred, as confirmed by the continued net inflow into 11 United States-based spot Bitcoin exchange-traded funds (ETFs) on October 23, as reported by CoinGlass.
BlackRock’s iShares Bitcoin Trust ETF raked in a substantial $323.6 million inflow, contributing to the overall $198.5 million net inflows across the ETFs. However, the ARK 21Shares Bitcoin ETF and Bitwise Bitcoin ETF saw outflows of $99 million and $25.2 million, respectively.
The US Bitcoin ETFs had been on a streak of seven consecutive trading days of inflows from October 11 to October 21, amassing almost $2.7 billion in assets. Unfortunately, this streak was broken on October 22 with an $87.9 million net outflow.
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