Chiara Bianchi
On Monday, crypto markets experienced a sharp reversal as Bitcoin’s value dropped by more than $5,000 from last week’s highs above $73,000, leading to widespread liquidations on major centralized exchanges. This downturn, following a period of high optimism spurred by strong inflows into U.S.-listed Bitcoin ETFs and highs not seen since March, left traders facing substantial losses, with BTC alone accounting for nearly $49 million in liquidations.
Bitcoin Rally Reverses as Market Sees $225 Million in Liquidations
Bitcoin’s recent surge fueled investor excitement, bringing in net inflows of $2.22 billion into BTC ETFs as the market anticipated a sustained bull trend. However, Monday’s swift decline triggered extensive liquidations for traders with leveraged positions, with 24-hour liquidation figures reaching approximately $225 million. BTC traders faced the most significant impact, while short-position holders incurred nearly $30 million in losses, and long traders saw losses of about $20 million.
CoinGlass data reveals that over 98,000 traders on exchanges like Binance, Bybit, HTX (formerly Huobi), OKX, and Bitfinex were affected by the downturn. OKX recorded the largest single liquidation order, a $5.26 million BTC/USDT trade. Ethereum traders also saw losses, though on a smaller scale compared to BTC, with total liquidations at around $28.5 million. Short traders led losses with roughly $15 million, while long positions accounted for $13 million.
Altcoins Hit Hard as Solana, Dogecoin, and Others Face Liquidations
Other cryptocurrencies were not immune to the market’s decline, with Solana, Dogecoin, Sui, and Apecoin experiencing collective liquidations totaling $44.98 million. Solana traders reported about $11 million in losses, and Dogecoin traders saw liquidations reaching $12.77 million.
Despite the downturn, analysts remain optimistic about BTC’s potential to recover by around 10% after the U.S. election on Tuesday, November 5. Well-known trader Daan Crypto Trades noted on X (formerly Twitter) that while Bitcoin’s recent weekly close was less than ideal, the upcoming election could still prompt a significant move of 10% or more, depending on the results.
