Cryptocurrency liquidations in the last 24 hours have reached $825 million, with long positions dominating. The market crash comes as major altcoins begin to lose value.
Summary
- The cryptocurrency market recorded a huge liquidation total of $825.4 million on October 30, with long positions accounting for more than 79% of the total. Bitcoin led the losses with $310.3 million in long liquidations.
- Market capitalization fell 1.6% to $3.8 trillion as Bitcoin, Ethereum, and major altcoins like Solana and XRP saw sharp declines.
- The slowdown was driven by post-Fed rate cut uncertainty, excessive leverage and fading investor momentum despite new ETF launches.
On October 30, total liquidations across the entire crypto market reached $825.4 million, approaching a $1 billion mass wipeout. Long positions contributed to the majority of liquidations, accounting for $656.7 million. Meanwhile, short positions have amounted to $168.9 million.
Among the positions, Bitcoin (btc) long positions have seen the most liquidations compared to any other asset. Bitcoin long positions have reached $310.3 million, far surpassing Bitcoin short positions which amount to just $59.2 million.
In the last hour, the industry has lost almost 10 million dollars in settlements. Bitcoin liquidations dominate the heat map, reaching $2.88 million, while Ethereum (ETH) has seen $2.41 million in liquidations. Other altcoins have reached $815,650, while Solana (SUN) remains with $481,430 in settlements.
The massive liquidations have put a dent in the overall crypto market capitalization, which has fallen 1.6% and is further below the $4 trillion mark. On October 30, the overall crypto market capitalization has fallen to 3.8 billion dollars. Meanwhile, its 24-hour trading volume amounts to $192 billion.
The deletion was triggered by a string of major tokens turning red in the past few hours. Bitcoin is currently trading on the edge of $110,000, having fallen 2.4% in the last 24 hours. Meanwhile, Ethereum has already fallen from its high of $4,000, having fallen 2.5% to $3,899.
Despite the recent launch of two Solana ETFs on the market, Solana has fallen further below $200 after briefly reaching $201. At the time of this publication, the token has fallen slightly by 0.9% as it approaches the $190 mark. Similarly, XRP (XRP) has lost around 3.5% and is currently trading at $2.56.
Smaller altcoins like Pi Network (PI) and Aster (ASTER) have also been the most affected by the crisis, falling 2.1% and 5% respectively. Dogecoin (DOGE) has fallen 2.1% to around $0.189 in the last day.
Why is the cryptocurrency market crashing right now?
The recent cryptocurrency market crash is primarily due to a combination of macroeconomic pressures, structural vulnerabilities, and leveraged trading dynamics. Increased uncertainty around monetary policy has made unprofitable assets like cryptocurrencies even less attractive to investors.
Following the decision of the Federal Reserve decision To cut interest rates by 0.25%, which was in line with analyst expectations, investors rushed to adopt the “buy the rumor and sell the news” strategy, which typically sees prices rise in anticipation of a given event before calming down once the news has passed. This means that the market momentum around the Federal Reserve’s rate cut has calmed down.
Furthermore, the cryptocurrency market is burdened with excessive leverage and poor liquidity. A large portion of the trading volume comes from derivatives which allow for high exposure with little capital. When prices fell, liquidation cascades were triggered, leading to forced closures of leveraged long positions and pushing prices further downward, triggering more forced liquidations.
Despite the launch of new crypto ETFs, such as the Bitwise Solana Stake ETF, Grayscale’s Solana Stake ETF, and Canary’s Litecoin and HBAR ETF, the momentum surrounding the launch appears to have decreased as these tokens have fallen instead of rising.
