Crypto bulls cop second-biggest liquidation day in October

As a seasoned researcher with years of experience navigating the tumultuous seas of cryptocurrency markets, I can say that the crypto market is never short of surprises – it’s like a rollercoaster ride on steroids! The recent events with Bitcoin and other major cryptocurrencies are no exception.


Supporters of cryptocurrency who wagered on a continued market ascent experienced one of the second-largest days of withdrawals in October. Currently, the market is stable following Bitcoin’s decline which caused a decrease in the value of prominent digital currencies.

On October 23, a total of $261 million in cryptocurrencies was liquidated, with more than $203.5 million resulting from long positions. This is the second highest amount of crypto longs liquidated, following the $450.8 million worth that were liquidated on October 1 when Bitcoin (BTC) fell approximately 5%. According to data from CoinGlass.

Yesterday saw the largest single-day liquidation for long positions on Ethereum (ETH), totaling approximately $77 million. This was closely followed by about $58.3 million in Bitcoin call options being liquidated over the past 24 hours.

Bitcoin’s price surge to a three-month high near $70,000 on October 21 had traders hopeful for further growth. However, the bullish trend couldn’t be maintained, leading to a drop in price to a low of $65,500 on October 23. The market then saw a slight recovery, with Bitcoin closing at $67,386, marking an increase of 0.5% over the previous 24 hours.

Crypto bulls cop second-biggest liquidation day in October

Currently, ETH is experiencing the most significant daily decline among the top ten cryptocurrencies, dropping by 1.7% to reach $2,552. This price drop follows a peak of $2,620 earlier in the day, and it marks a fall from the 24-hour high that was reached on October 21st at $2,750 – a level ETH hadn’t seen for two months.

The analysis of transactions within Ethereum‘s blockchain suggests that its expensive transaction costs are discouraging network usage. This decrease in activity may lead to reduced interest in ETH staking and potentially dampen investor enthusiasm.

On a turbulent Bitcoin day, it appears that institutional investors remained unfazed, as 11 U.S.-based Bitcoin exchange-traded funds (ETFs) collectively experienced an increase in investments on October 23, according to CoinGlass.

In total, the investment funds experienced approximately $198.5 million in overall inflows. This growth was primarily driven by a significant $323.6 million investment into BlackRock’s iShares Bitcoin Trust ETF (IBIT). However, this positive trend was somewhat offset by outflows of $99 million from the ARK 21Shares Bitcoin ETF (ARKB) and $25.2 million from the Bitwise Bitcoin ETF (BITB).

Over a period of seven consecutive trading days, from October 11th to October 21st, US Bitcoin ETFs experienced an inflow of approximately $2.7 billion. However, this positive trend was interrupted on October 22nd, as there was a net outflow of around $87.9 million, ending the streak.

Read More

2024-10-24 09:01