bullish

Spike

Radiant Capital

<ul class="wp-block-list">
 <li><strong>October saw significant liquidations, revealing volatility in the market.</strong></li>
 <li><strong>High transaction fees on Ethereum dampen investor confidence and trading activity.</strong></li>
</ul>
<p>The crypto market is in a state of flux, marked by significant liquidations and fluctuating investor sentiment. On October 23, 2024, total liquidations reached $261 million, predominantly affecting long positions as traders anticipated a continuation of Bitcoin’s bullish trend.&nbsp;</p>
<div class="wp-block-image">
 <figure class="aligncenter"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfpszu2Nk9ZgmE_lYwolXux5jTZOCSQVty-o1AaWdAwNXCcyZ5tedRdKi1PA1oVMW9RlHNTISaDilxUyn0JxcrH9sTSibmjZjseeD9-XG9ACLyAzVPOU7vvW4igB3WGI8tX7lp_88UjUCx2GTxv3HN7CdU?key=rklMYn-w_mVW1TaL5_pR_g" alt="">
  <figcaption class="wp-element-caption">
   Crypto Liquidation Chart, Source: Coinglass
  </figcaption>
 </figure>
</div>
<p>This liquidation surge ranks as the second-largest for October, following the $450 million liquidated on October 1 when Bitcoin fell approximately 5%.​This spike was largely triggered by Bitcoin’s <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">price</a> drop below the crucial $60,000 mark. It is influenced by ongoing geopolitical tensions, particularly in the Middle East​.</p>
<p>Moreover, at that time, many traders have opted to shift their assets into <a href="https://www.investopedia.com/terms/s/stablecoin.asp" target="_blank" rel="noopener noreferrer nofollow">stablecoins</a> as a precautionary measure against the uncertain market conditions​.</p>
<p>Amid these dynamics, <a href="https://thenewscrypto.com/bitcoin-btc-flips-support-to-resistance-signaling-a-rally/" target="_blank" rel="noopener noreferrer nofollow">BTC</a> saw considerable movement, peaking near $70,000 on October 21 before retreating to around $65,500 on the 23rd. It has since rebounded to about $67,386.</p>
<div class="wp-block-image">
 <figure class="aligncenter"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdEqbA-BVnElKw17U-avzuxilE-VwqstJm4H73ThzR22xMf1sTvIwIwEpjSPQvLqlUUrwqLAQg9rBVIN_IyKVb5OKGIo015pRAZpfmOOAH9ySmI1XDhWIObvkwywHYJ1Y1ThtMcS1gNxKISBJ1GzR3U2F9y?key=rklMYn-w_mVW1TaL5_pR_g" alt="">
  <figcaption class="wp-element-caption">
   Bitcoin Price Chart, Source: TradingView
  </figcaption>
 </figure>
</div>
<p>Also, the recent uptick in liquidations can be partly attributed to traders overextending themselves in the face of a bullish market. The optimism surrounding Bitcoin’s price rise led many to take leveraged long positions. Traders quickly unwound their positions when the market failed to maintain upward momentum​. The latest figures reveal that 75% of recent liquidations, totaling $91 million. It originated from long bets, underscoring the prevailing bearish sentiment​.</p>
<h3 class="wp-block-heading" id="h-potential-crypto-market-recovery">Potential Crypto Market Recovery !?</h3>
<p>Interestingly, institutional interest remains robust, with U.S.-based Bitcoin exchange-traded funds (<a href="https://thenewscrypto.com/japans-regulatory-caution-stalls-crypto-etf-progress/" target="_blank" rel="noopener noreferrer nofollow">ETFs</a>) recording a net inflow of $198.5 million on the same day, buoyed by significant investments in BlackRock’s iShares Bitcoin Trust ETF. However, other major ETFs experienced outflows, reflecting mixed sentiment among institutional investors​.</p>
<p>Looking ahead, while the crypto market continues to face volatility, certain indicators suggest potential for recovery. The ongoing scarcity of Bitcoin on exchanges may lead to upward price movements if demand stabilizes. Furthermore, developments in decentralized finance (DeFi) and other emerging sectors within the crypto space could provide catalysts for market growth​.</p>
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What Drives October’s Spike in Crypto Liquidations?

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