Bullish cryptocurrency bets betting on the market to continue rising experienced the second-largest liquidation day in October. After Bitcoin's decline pulled down the prices of major cryptocurrencies, the market is currently stabilizing.
Data from CoinGlass shows that on October 23, the total amount of cryptocurrency liquidations reached $261 million, with over $203.5 million coming from bullish bets, a figure only surpassed by the $450.8 million in liquidations from bullish cryptocurrencies when Bitcoin (BTC) fell about 5% on October 1.
The number of liquidation days for Ethereum (ETH) bullish bets was the highest, with liquidation amounts exceeding $77 million in the past 24 hours; followed by Bitcoin call options, with liquidation amounts around $58.3 million.
At the time of this liquidation, traders were optimistically believing that Bitcoin could continue to rise. Bitcoin's price approached $70,000 on October 21, marking the highest point in three months. However, Bitcoin failed to maintain this momentum, falling to a low of $65,500 on October 23, before rebounding to $67,386, an increase of 0.5% within 24 hours.
Meanwhile, ETH experienced the largest decline among the top ten cryptocurrencies, dropping 1.7% on the day to $2,552, down from a 24-hour high of $2,620. Prior to the drop, the currency had surged to a two-month high of $2,750 on October 21.
On-chain data shows that high transaction fees on Ethereum are suppressing activity on the blockchain, thereby reducing the demand for ETH staking and potentially dampening investor optimism.
The rollercoaster volatility of Bitcoin does not seem to have scared off institutional investors. According to CoinGlass, on October 23, 11 U.S. spot BTC exchange-traded funds (ETFs) saw net inflows again.
The total net inflow for these funds was $198.5 million, with BlackRock's iShares Bitcoin Trust ETF (IBIT) seeing an inflow of $323.6 million, while ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) experienced outflows of $99 million and $25.2 million, respectively.
U.S. Bitcoin ETFs saw inflows for seven consecutive trading days from October 11 to October 21, totaling nearly $2.7 billion, but the net outflow of $87.9 million on October 22 broke this record.
This article is for reference only and does not constitute investment advice.
