A sharp drop in Bitcoin prices triggered a cascade of liquidations on October 23, wiping out leveraged positions across the market.
The crypto market experienced another significant day of liquidations, with nearly $300 million wiped out in a single day. Data from CoinGlass revealed that traders, particularly those holding long positions, were hit the hardest, marking one of the largest liquidation events in October.
These traders suffered a combined loss of approximately $194 million on October 23, while short sellers faced a modest liquidation of nearly $79 million, bringing the total to $272 million. The last time the crypto industry witnessed such a massive liquidation was on October 3, when the bears took over the market, leaving the bulls to suffer. At the time, Coinspeaker reported that around $556 million in leveraged positions were forcefully closed.
Market Decline Hits Ethereum and Bitcoin Hard
Since the October 3 event, the crypto market has continued to record significant liquidations as traders wager on the potential price performance of digital assets.
A few days ago, the bears struck again when Bitcoin BTC $68 900 24h volatility: 2.2% Market cap: $1.38 T Vol. 24h: $49.85 B suddenly dropped to $67,000 after reaching as high as $69,500 for the first time in months. The sudden price movement caught investors who had predicted that the king coin would surpass the $70,000 mark by surprise, resulting in about $135 million liquidated from open leveraged positions.
As the market continues to decline, the latest wave of liquidations on October 23 affected traders across major cryptocurrencies, including Bitcoin and Ethereum ETH $2 040 24h volatility: 4.3% Market cap: $245.94 B Vol. 24h: $22.40 B , as market volatility spiked.
Ethereum traders bore the brunt of the market decline, with nearly $80 million liquidated in the past 24 hours. Data from CoinGlass shows that long traders recorded more than $61 million in losses, while short sellers faced a modest loss of $16 million.
For Bitcoin bulls, the total amount liquidated stood slightly above $58 million. As usual, long traders were hit the hardest, losing more than $30 million in a single day, while short traders suffered about $27 million in liquidations.
Concerns Over Bitcoin’s Future Movement
Meanwhile, as long traders continue to face steep losses, some experts warn that Bitcoin’s bullish momentum may be waning. Industry analysts like XBTManager mentioned last week that for Bitcoin to break through the $70,000 level again, demand needs to increase on exchanges like Binance, OKX, KuCoin, Bybit, and Bitget.
According to him, the leading crypto asset is currently in what he described as a “resistance” phase, where it must move into a “decision phase” to continue its upward movement.
He also mentioned that despite the recent rise, Bitcoin could face setbacks that might bring it down to the $63,000-$64,000 range.
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