- Liquidations in the cryptocurrency market surged to above $200 million within a 24-hour period as Bitcoin (BTC) and Ethereum (ETH) experienced a downturn.
- Despite this, analysts remain optimistic regarding BTC’s price movement, anticipating a positive close for September.
The crypto ecosystem witnessed over $200 million in liquidations after Bitcoin dipped close to $64k amid renewed bearish trends.
As per data from Coinglass, the cryptocurrency market experienced a dramatic 128% rise in total liquidations over the last 24 hours, exceeding $200 million. This surge coincided with Bitcoin (BTC) dropping 4% to roughly $63,100 on September 30.
24-hour liquidations
Having notably outperformed expectations in September with a rise to $66k, BTC sharply retracted, pulling many altcoins down in tandem. Meanwhile, Ethereum (ETH) fell below $2.6k due to recent sell-offs by the Ethereum Foundation, leading to a total of $164 million in liquidated long positions.
At the time of reporting, shorts contributed to approximately $37 million in liquidations over the 24-hour period.
Crypto liquidation involves closing a trader’s position when their margin account cannot support it any longer, typically triggered by significant losses or insufficient margin.
According to Coinglass data, around 68,900 traders have faced liquidations in the last 24 hours. The largest individual liquidation occurred on the OKX exchange in the ETH-USD-SWAP market, amounting to $1.92 million.
BTC bounce: Uptober is here
In spite of the recent decrease in BTC’s value, bullish sentiments are expected to gain traction in the upcoming weeks.
This optimistic outlook can be attributed to the imminent closure of September, which appears likely to end with BTC up over 7%, barring any drastic downturn—a scenario not unknown to the crypto market. Nevertheless, analysts remain hopeful.
As crypto analyst Kaleo mentions in the X post below, October and November have historically been very favorable months for Bitcoin. If this trend persists, BTC is expected to experience a significant rebound in the coming months.
Here’s a visual representation of the seasonal trends for Bitcoin over the past 13 years.
October ranks as one of the months with the second highest positive returns for BTC, and also typically showcases the second highest average percentage change (represented by blue lines). The only month better than… pic.twitter.com/RZ9g0VvcH5
— K A L E O (@CryptoKaleo) September 30, 2024
Earlier on Monday, CoinShares, a digital asset management firm, released its weekly report. It indicated that crypto investment products recorded inflows for the third consecutive week, buoyed by recent optimism regarding interest rate reductions. Bitcoin surpassed $1 billion in inflows while Ethereum ended a five-week period of negative inflows.
At the time of writing, BTC was trading around $63,405.
