Uptober Bitcoin News: $450M Liquidations Hit Traders Hard
Uptober Bitcoin News: BTC Falls Amid Geopolitical Tensions
The cryptocurrency market witnessed a significant shakeup in the last 24 hours as futures linked to major tokens experienced over $450 million in liquidations. Bitcoin sudden drop triggered a cascade of losses, with some major altcoins falling by as much as 8%. According to data from CoinGlass, bitcoin traders holding bullish positions saw liquidations surpassing $122 million, while ether futures faced nearly $100 million in losses. Altcoins, too, were heavily impacted, with memecoin PEPE recording an unusually high $10 million in liquidations.
Liquidations and Their Market Impact
Liquidations occur when leveraged traders are unable to meet margin requirements, forcing exchanges to close their positions. The large-scale liquidations seen in the last day suggest an extreme market reaction, with many traders unprepared for the Crypto sharp downturn. These liquidations, particularly in altcoins and smaller tokens, mark the highest levels since July, a sign of heightened volatility and uncertainty in the market. Historically, such liquidations can signal a potential market turning point, where a sudden reversal might follow extreme sentiment shifts.
Global Geopolitical Tensions Add to Market Woes
The plunge in bitcoin and other risk assets was further exacerbated by rising geopolitical tensions. Iran’s missile strikes on Israeli locations caused widespread fear in global markets, leading to a sharp sell-off in risk-sensitive assets like bitcoin. The fear of a prolonged conflict, coupled with potential retaliation by Israel, has caused market participants to adopt a more risk-averse stance, pushing bitcoin to a low of $60,300, its worst start to October since 2013.
October’s Bullish History Faces Setback
Historically, October has been a bullish month for bitcoin, with only two negative months since 2013. Traders have been positioning for a continued upward trend, targeting $70,000 for BTC by the end of the month. Nearly 86% of all futures bets were bullish, as traders expected favorable global monetary policies and U.S. political support to drive prices higher. However, the recent geopolitical tensions and unexpected price drop have put these bullish bets in jeopardy, causing the largest trader losses since August.
What’s Next for Bitcoin and the Market?
Despite the recent downturn, some market analysts believe that the current price action may be temporary. The sharp liquidation cascade may signal an overreaction, potentially setting the stage for a price rebound. As the geopolitical situation evolves and market sentiment stabilizes, traders will be closely watching key support levels for signs of recovery. For now, caution prevails, as volatility remains high and uncertainty looms large over the crypto market.
Also Read:- Why is Crypto Crashing Today and Will it Recover Today
