Bitcoin’s drop to $68,000 wiped out $225 million from the crypto market on Monday.
On Monday morning, the crypto markets took a sharp turn as Bitcoin BTC $84 532 24h volatility: 0.5% Market cap: $1.68 T Vol. 24h: $9.12 B tumbled over $5,000 from last week’s highs of more than $73,000, triggering a cascade of liquidations across major centralized exchanges. After a week of high optimism driven by surging inflows on US-listed Bitcoin exchange-traded funds (ETFs) and fresh highs not seen since March, the abrupt downturn left traders reeling, with Bitcoin alone responsible for nearly $49 million of the day’s liquidations.
Bitcoin’s latest climb brought excitement to the market, with Bitcoin ETFs seeing an impressive $2.22 billion in weekly net inflows as investors anticipated a prolonged bull run. However, the tide shifted swiftly on Monday as the asset’s price plunged, leading to widespread liquidations for those holding leveraged positions. As of the time of writing, the 24-hour liquidation total stands at an estimated $225 million, with Bitcoin traders bearing the heaviest losses. Short-position holders were hit the hardest, losing roughly $30 million. Meanwhile, long traders recorded a slightly lower loss of around $20 million.
Ethereum Traders See Modest Losses amid Market Downturn
Data from CoinGlass indicates that the market correction affected over 98,000 traders who held positions on crypto exchanges such as Binance, Bybit, HTX (formerly Huobi Global), OKX, and Bitfinex. OKX saw the largest single liquidation order on a BTC/USDT pair, amounting to a staggering $5.26 million.
Ethereum traders experienced more moderate losses compared to Bitcoin, with total liquidations hitting approximately $28.5 million. Short-position traders again bore the brunt of the losses, as their bets on a further ETH price drop were invalidated. Forced liquidations saw short positions lose about $15 million, while long traders experienced $13 million in losses.
The market’s abrupt reversal was not limited to Bitcoin and Ethereum. Traders holding leveraged positions in other popular cryptocurrencies, including Solana SOL $134.7 24h volatility: 0.2% Market cap: $69.59 B Vol. 24h: $2.37 B , Dogecoin DOGE $0.16 24h volatility: 2.5% Market cap: $23.49 B Vol. 24h: $444.04 M , Sui SUI $2.12 24h volatility: 0.3% Market cap: $6.90 B Vol. 24h: $378.33 M , and Apecoin APE $0.44 24h volatility: 5.9% Market cap: $349.82 M Vol. 24h: $24.76 M , collectively saw about $44.98 million in liquidations. Solana traders alone reported losses of roughly $11 million, while Dogecoin traders faced a total of $12.77 million in liquidations.
Bitcoin Could See 10% Increase After US Election
Despite Monday’s price drop and subsequent liquidations, market observants remain optimistic that Bitcoin could still gain around 10% from its current level, regardless of the outcome of the US election on Tuesday, November 5.
Renowned crypto trader Daan Crypto Trades posted on X (formerly Twitter) that while Bitcoin’s weekly close did not appear “the cleanest,” this factor may hold less significance with the election approaching. He noted that Bitcoin is highly likely to move “at least 10% in either direction based on the election results.”
The Tuesday election will see former US President Donald Trump and the current Vice President face off in the election to determine who will lead the country after Joe Biden’s administration.
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