The overall crypto market outlook has turned bearish, with Bitcoin shedding some of its previous gains. Bitcoin hit a daily low of $60,189, forcing over $450 million in long position liquidations.
The bearish trend saw the broader crypto market cap decline by almost 5% within the past day. The Greed and Fear Index fell to 39—indicating fear among market participants.
Crypto Market Records $450 Million in Liquidations As BTC Slips
Bitcoin price nosedived to $60,189 amid the increasing tension in the Middle East. The drastic change spread to the broader crypto market, with many tokens losing considerably within the past 24 past.
Consequently, the bearish trend forced massive liquidation of long positions, amounting to over $450 million within the past 24 hours, according to Coinglass data.
This data indicates that crypto traders with higher price bets on Bitcoin lost over $122 million.
Similarly, Ether’s long positions saw almost $100 million in liquidations. Other altcoins saw the liquidation of more than $85 million, the biggest since July. Among these, memecoin Pepe (PEPE) recorded $10 million in long liquidations.
Historically, October remains a favorable month for Bitcoin and crypto at large, with just two negative months since 2013. So, over 86% of traders approached the market in October with higher optimism, which accounted for long bets on several crypto products.
Moreover, the broader crypto market indicated significant reclaims over the past few weeks based on US political support and global monetary policies. So, many participants predict BTC will climb to the $70,000 threshold in a few weeks.
The recent drastic price decline destabilized the market and lowered participants’ expectations. Consequently, many have piped down their engagement while trying to observe the next market move. The Greed and Fear Index now reads 39 out of 100, indicating “Fear” among investors and traders.
The Impact of Sudden Liquidations On The Crypto Market
Crypto liquidations remain one of the major risks for leverage trades in the industry. It occurs once an exchange forcefully ends traders’ leveraged position when they fail to meet margin requirements.
Large-scale liquidations occur when the market’s price changes significantly. They reflect extreme market conditions like panic accumulations or sales. Some liquidation trends indicate a possible turnaround with price reversal as the market sentiment changes.
Meanwhile, Bitcoin is gradually reclaiming its value after dropping to $60,189. BTC trades at $61,148, showing a 4.08% decrease in the last 24 hours. Its market cap is $1.20 trillion, while the trade volume surged by 59.25% to $50.97 billion.
On its part, Ethereum’s price hovers around $2,446, reflecting a 6.93% decline over the past 24 hours.
The overturn in the crypto market saw the broader crypto cap slip to $2.15 trillion, following a 5% decrease. With rising tension in the Middle East, crypto market participants will likely exercise more caution and observe the next impact on prices.
