Bullish bets on cryptocurrencies expecting 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 indicates that on October 23, the total amount liquidated in cryptocurrencies reached $261 million, with over $203.5 million stemming from bullish bets, a figure only surpassed by the $450.8 million liquidated when Bitcoin (BTC) dropped about 5% on October 1.
The day with the highest number of liquidations for Ethereum (ETH) bullish bets saw over $77 million liquidated in the past 24 hours; followed by Bitcoin call options, which had a liquidation amount of approximately $58.3 million.
This liquidation occurred as traders were optimistically believing that Bitcoin might 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, dropping to a low of $65,500 on October 23 before recovering to $67,386, showing a 0.5% increase over 24 hours.
Meanwhile, ETH was the biggest loser 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 decline, 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 have suppressed activity on the blockchain, reducing demand for ETH staking and potentially dampening investor optimism.
Bitcoin's rollercoaster volatility 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) faced outflows of $99 million and $25.2 million respectively.
U.S. Bitcoin ETFs experienced inflows of nearly $2.7 billion over seven consecutive trading days from October 11 to October 21, but the $87.9 million net outflow on October 22 broke this record.
This article is for informational purposes only and does not constitute investment advice.
