The crypto liquidation in the market as of writing has underscored a change in the usual bullish trajectory the market always see in October
The traditionally bullish month of October, popularly referred to as “Uptober” among crypto enthusiasts, disappoints many per current liquidation. Early performance data reveals that the sector suffered shocking losses despite huge bets on a positive start to the month. October started with a sudden market collapse, leading to over $500 million in liquidations.
Bitcoin, Ethereum Leads Massive Crypto Liquidation
The cryptocurrency liquidation heat map shows that assets like Bitcoin and Ethereum witnessed the highest losses, with over $142 million and $111 million, respectively. The shocking flop resulted in a $10 billion loss in market value. Others posted cumulative liquidation of $99.99 million.
Solana recorded a $19.48 million liquidation, while XRP, DOGE, Shiba Inu, and TON registered $8.18 million, $10.42 million, $2.77 million, and $2.60 million, respectively. This indicates that the liquidation affected all crypto assets.
The largest single liquidation order was on Binance BTCUSDT, valued at $12.66 million. In the past 24 hours, Binance and OKX exchanges also recorded significant liquidations of $266.20 million and $173.333 million, respectively.
In total, exchange liquidations stood at $539.07 million in the past 24 hours.
Long Positions Lead to ‘Rektober’ Liquidations
An analysis of the Bitcoin chart shows the market reaction after a sharp drop in price from about $64,000 to $61,000. Although investors anticipated continuing the bullish trajectory for Bitcoin, particularly based on antecedents, the price moved negatively.
This marks a major shift from prior years when the start of October usually heralded investor profits. As of the time of writing, Bitcoin price stood at $61,174.47, a 4.20% drop in the past 24 hours, according to data. However, market volume remains at 47.96%, worth $49.92 billion.
Investors anticipated a sustained bullish trajectory for crypto assets, especially Bitcoin, so they opened long positions. These long positions accounted for most of the liquidations, leading to the “Rektober” emergence
However, analysts hope the market will rally from the liquidation shock in the coming days.
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