Crypto Selloff Eases as Liquidations Fall 40 percent

The cryptocurrency market is beginning to stabilize following a significant drop on October 22, leading to a substantial decrease in liquidations.

According to CoinGecko, the global crypto market capitalization lost $57 billion yesterday, bringing it down to $2.44 trillion after reaching a three-month high of $2.498 trillion just a day prior. Over the last 24 hours, the market cap experienced an additional decline of 2.5%, erasing another $7 billion.

As the selloff subsides, total liquidations across the crypto market decreased by 40%, totaling $121 million, as reported by Coinglass. Notably, 75% of these liquidations, amounting to $91 million, were tied to long positions during the downturn.

Bitcoin and Ethereum Liquidations

Bitcoin led the liquidations with $18.5 million, including $11 million from long positions and $7.5 million from shorts, as its price fell below $67,000. At the time of writing, BTC was trading at $66,800, reaching a one-week low.

Ethereum also saw considerable liquidations, with $11.2 million of its total $14.5 million coming from long positions. Despite the prevailing bearish sentiment, ETH remains above the crucial $2,600 mark.

The largest single liquidation order was nearly $690,000 in the Solana/USDT pair on Binance, the largest crypto exchange by trading volume.

ETF Outflows Amid Market Sentiment

A report from crypto.news indicated that spot Bitcoin exchange-traded funds (ETFs) in the U.S. experienced their first day of outflows as market sentiment soured, resulting in a net outflow of $79.1 million. This decline was primarily driven by Ark and 21Shares’ ARKB fund, which saw outflows of $134.7 million.

In contrast, Ethereum ETFs recorded a net inflow of $11.9 million, reflecting a somewhat more optimistic outlook despite ongoing market uncertainties.