Tuesday, February 18, 2025

Crypto Market Sees Second-Largest Liquidation Day of October

Article Image

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.

In times of market volatility, keeping a close eye on investment opportunities and refining trading strategies becomes crucial. For more critical insights and updates, consider subscribing to the Markets Outlook newsletter for valuable information delivered every Monday.

Are DeFi and Ethereum taking the lead in the new crypto narrative? Explore fascinating discussions with industry experts like Michaël van de Poppe in the X Hall of Flame magazine.

Don’t miss out on the latest trends and news in the crypto world—subscribe now! By subscribing, you agree to our Terms of Services and Privacy Policy.

Hot this week

Study Finds 1 in 5 US Voters Engaged with Cryptocurrency

Originally published on: December 18, 2024A recent survey conducted...

Revolutionizing Blockchain Technology: Key Takeaways from G6 Networks AMA

Originally published on: December 18, 2024Gabor Bovai and David...

HashKey Group Unveils Revolutionary Ethereum Layer-2 HashKey Chain Mainnet

Originally published on: December 18, 2024HashKey Group, a pioneering...

Beware of Phishing Scammers: A Warning from Ledger’s Users

Originally published on: December 18, 2024Reports have surfaced indicating...

Avara Founder Supports Removal of Polygon Markets from Aave Platform

Originally published on: December 18, 2024Stani Kulechov, the CEO...

Topics

Study Finds 1 in 5 US Voters Engaged with Cryptocurrency

Originally published on: December 18, 2024A recent survey conducted...

Revolutionizing Blockchain Technology: Key Takeaways from G6 Networks AMA

Originally published on: December 18, 2024Gabor Bovai and David...

HashKey Group Unveils Revolutionary Ethereum Layer-2 HashKey Chain Mainnet

Originally published on: December 18, 2024HashKey Group, a pioneering...

Beware of Phishing Scammers: A Warning from Ledger’s Users

Originally published on: December 18, 2024Reports have surfaced indicating...

Avara Founder Supports Removal of Polygon Markets from Aave Platform

Originally published on: December 18, 2024Stani Kulechov, the CEO...

Crypto Communities Across the US Gear Up for Festive Meetups

Originally published on: December 18, 2024As the holidays approach...

Ethena Labs Joins Forces with Trump-Backed World Liberty Financial for Exciting Partnership

Originally published on: December 18, 2024Ethena Labs, a leading...

Unlock Your Football Skills with Cristiano Ronaldo and Binance Partnership

Originally published on: December 18, 2024Binance and Cristiano Ronaldo...
spot_img

Related Articles

Popular Categories

spot_imgspot_img