Mass Liquidations Impact Over 100,000 Traders Amid Crypto Market Downturn
The cryptocurrency market faced significant turmoil on October 3, 2024, as over 100,000 traders were hit by mass liquidations. Bitcoin (BTC) briefly fell below the key $60,000 mark, adding to the pressure on traders caught in the market’s downward spiral.
At 1 p.m. EDT, Bitcoin was trading slightly above $60,000, marking a 2.8% drop over the last 24 hours. However, this recovery remains fragile, as BTC dipped below $60K just minutes later. The broader crypto market has seen a 3.82% decline, with the total market value dropping to $2.09 trillion.
Over $295 Million in Positions Liquidated
The sell-off triggered significant liquidations, totaling $295.34 million in just 24 hours. Notably, $246.78 million of those were long positions, while BTC alone saw $44.92 million in long positions wiped out. According to data from Coinglass, 104,856 traders were liquidated during this period, highlighting the market’s vulnerability.
Stablecoins on the Rise Amid Market Uncertainty
Despite a global trading volume of $121.25 billion, a massive $88.32 billion of that came from stablecoins, indicating a growing shift toward safer assets as traders seek stability in volatile conditions. Bitcoin remains the tenth most valuable asset globally with a market capitalization of $1.191 trillion, still surpassing Berkshire Hathaway’s $975.84 billion. However, BTC’s lead could be threatened if its market cap drops by another $215.16 billion.
Geopolitical Tensions and Market Volatility
The ongoing conflict in the Middle East is fueling uncertainty across global financial markets, including cryptocurrencies. Bitcoin, often seen as a form of “digital gold,” has experienced increased trading activity amid the heightened volatility. While some investors view it as a hedge against instability, others are exiting the market due to its speculative nature.
The crypto market continues to grapple with volatility, leaving traders uncertain about the near-term future of digital assets like Bitcoin.
