As October dawned, analysts and investors were filled with optimism, expecting a repeat of the historical bullish trend known as “Uptober.” However, this optimism was quickly overshadowed by shocking market movements, leading some observers to dub the month “Rektober.”
Data from the analytics platform CoinGlass reveals a staggering loss of $10 billion in market value within the first day of October. This dramatic shift was accompanied by over $540 million in liquidations, affecting more than 161,000 traders in just 24 hours. The largest liquidation order, valued at $267 million, occurred on Binance, underscoring the extent of the downturn.
Among the cryptocurrencies affected, Bitcoin (BTC) took the lead, with liquidations totaling approximately $143.26 million in the same timeframe. Ethereum (ETH) wasn’t far behind, recording about $111 million in liquidations. In the last hour alone, Ethereum saw a significant liquidation worth $227,180, while EigenLayer (EIGEN) experienced $161,140 in liquidations.
As of the latest data, Bitcoin is trading at approximately $61,460.02, having lost 3.95% of its value amid a sharp rejection from the $64,000 resistance level. Prior to this decline, Bitcoin had seen a brief bullish rally, closing September on a positive note. The hopes of investors were high that the October bullish narrative would help Bitcoin reclaim its macro rising trend and potentially reach a new all-time high (ATH).
However, after peaking at $65,600, Bitcoin faced a drop to around $63,200, highlighting the volatility in the futures market. Should the price fall below the $60,000 mark, analysts warn that it could plummet to the $50,000 support zone.
Currently, Bitcoin is testing crucial support levels, and the recent wave of liquidations has wiped out many overly leveraged positions. Many investors had opened long positions, believing Bitcoin could sustain its bullish momentum. Ironically, these long positions contributed significantly to the recent liquidations.
Crypto market experts are now closely monitoring Bitcoin's price action to see if the leading cryptocurrency can rebound from these negative trends and establish a new local high. To avoid severe retracement, Bitcoin must maintain a position above the $60,000 mark.
For the broader crypto market to recover from this significant liquidation and regain stability, it will need to navigate through a landscape marked by uncertainty. As October unfolds, factors such as interest rate cuts from the U.S. Federal Reserve and China’s People’s Bank of China could play pivotal roles. If liquidity in the broader financial ecosystem is freed up, it might lead to fiat devaluation, prompting institutional investors to hedge against inflation with Bitcoin.
As investors brace for what remains of October, the narrative surrounding the cryptocurrency market hangs in the balance, with hopes for a swift recovery tempered by the reality of recent events. Whether this month will indeed transform from “Uptober” to “Rektober” remains to be seen, but the stakes are higher than ever for Bitcoin and the entire crypto ecosystem.
October 2024, Cryptoniteuae