In the ever-volatile world of cryptocurrency, the past three days have seen Bitcoin (BTC) experience a tumultuous ride, resulting in its price dropping for the third consecutive day. This downturn has sent shockwaves through the market, leading to a substantial surge in liquidations, totaling a staggering $73 million in the last 24 hours. The abrupt reversal comes on the heels of Bitcoin’s impressive 10% surge between September 27 and October 2, culminating in a local top at $28,613.
This recent surge initially sparked optimism and triggered a pause in the downtrend of many altcoins, setting the stage for a bullish breakout. However, the market’s unpredictable nature has once again come to the forefront, emphasizing the importance of caution for investors navigating these digital waters.
The sudden spike in Bitcoin’s price proved alluring, but the subsequent reversal dealt a blow, with BTC plummeting by 5.21%. This unexpected turn caught overzealous bulls off guard, resulting in a flurry of liquidations amounting to a substantial $73 million within the last 24 hours, as reported by CoinGlass.
Leading the charge in this market upheaval are altcoins such as Bitcoin SV (BSV), Aave (AAVE), and Bitcoin Cash (BCH). Bitcoin SV has experienced a significant downturn, shedding almost 10% of its value in the past 24 hours. Following closely behind, Aave and Bitcoin Cash have lost 7% and 5.60%, respectively. Notably, out of the $73 million in liquidations, only $11.28 million stemmed from Bitcoin long positions. The majority of the liquidations came from altcoins, underlining the susceptibility of these alternative digital currencies to market volatility.
Adding to the market’s woes is the disappointing start of the first Ethereum futures ETF. Unsurprisingly, this has contributed to Ethereum (ETH) liquidations reaching a notable $6.77 million. The setback in Ethereum further compounds the challenges faced by the broader crypto market, as investors grapple with uncertainties and abrupt market movements.
This downturn serves as a stark reminder of the unpredictable nature of the cryptocurrency market, emphasizing the need for investors to exercise caution. The market turbulence, compounded by disappointing developments such as the Ethereum futures ETF’s lackluster start, underscores the challenges and uncertainties prevailing in the crypto landscape.