Recent Trends in Crypto Liquidations
- Crypto liquidations soared to over $200 million within 24 hours due to declines in Bitcoin (BTC) and Ethereum (ETH).
- Despite recent dips, analysts express optimism about Bitcoin’s price as September concludes positively.
The cryptocurrency market witnessed a substantial spike in liquidations, exceeding $200 million, driven by a drop in Bitcoin’s value to around $64,000 amid bearish market moves.
As per Coinglass data, total liquidations surged by 128% in the past day, with Bitcoin (BTC) falling by 4% to approximately $63,100 on September 30.
Overview of 24-Hour Liquidations
After a strong performance earlier in September, where Bitcoin spiked to $66,000, it fell sharply, causing a ripple effect across altcoins as well. Ethereum (ETH) also experienced a decline, dropping below $2,600 due to selling pressure from the Ethereum Foundation, leading to a total of $164 million in long liquidations.
Short positions accounted for about $37 million of the liquidations during this period.
Liquidation in cryptocurrency trading occurs when a trader’s position is forcefully closed because their margin account can no longer support an open position. This typically happens due to significant losses or insufficient margin to maintain the position.
According to Coinglass, more than 68,900 traders faced liquidations over the past 24 hours. The largest liquidation order was recorded on the OKX exchange in the ETH-USD-SWAP market, amounting to $1.92 million.
Anticipating a BTC Recovery: “Uptober” Ahead
Despite the recent decrease in Bitcoin’s price, bullish sentiment is expected to increase in the upcoming weeks.
The positive outlook may be attributed to the projection that Bitcoin will conclude September with an increase of over 7%, assuming no severe market downturns occur. Market analysts remain optimistic.
Crypto analyst Kaleo highlighted in a recent post on X that historically, October and November have been favorable months for Bitcoin. If this trend continues, a significant rebound for BTC could be on the horizon.
Here’s a visual representation of Bitcoin’s seasonality over the past 13 years.
October is both tied for the second highest month that BTC sees positive returns, and on average provides the second highest mean change % (blue lines). The only month with a higher… pic.twitter.com/RZ9g0VvcH5
— K A L E O (@CryptoKaleo) September 30, 2024
In a related update, CoinShares published its weekly report indicating that crypto investment products have seen inflows for three consecutive weeks, attributed to increased interest following interest rate cuts. Bitcoin surpassed $1 billion in inflows, while Ethereum broke a negative streak of five weeks.
As of the latest update, Bitcoin’s price is hovering around $63,405.
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