Crypto Market Reversal Sees Bitcoin $5,000 Plunge, Sparking $225 Million in Liquidations

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As a seasoned crypto investor with a decade of market experience under my belt, I’ve seen my fair share of rollercoaster rides. This morning’s dip in Bitcoin was a stark reminder that volatility is the name of the game in this industry. After the recent surge to over $73,000, I must admit I got a bit carried away with optimism myself, but Monday’s downturn served as a harsh reality check.

On Monday morning, I observed a significant drop in the crypto markets as Bitcoin plummeted by over $5,000 from its highs last week, which were more than $73,000. This sudden fall instigated a chain reaction of margin calls on major centralized trading platforms. After a week filled with optimism due to increased investments in US-listed Bitcoin ETFs and fresh peaks not witnessed since March, this unexpected downturn left traders taken aback, with Bitcoin accounting for almost $49 million of the day’s liquidated positions.

The recent surge in Bitcoin’s value has sparked enthusiasm in the market, resulting in a significant influx of $2.22 billion into Bitcoin ETFs as investors speculated about a continued bullish trend. However, the situation took a dramatic turn on Monday when the asset’s price suddenly dropped, causing numerous liquidations among those holding leveraged positions. As we speak, the total amount liquidated in the last 24 hours is approximately $225 million, with Bitcoin traders experiencing the majority of these losses. Short-term investors suffered the most, losing around $30 million, while long-term investors endured slightly less loss, about $20 million.

Ethereum Traders See Modest Losses amid Market Downturn

According to CoinGlass’s data, more than 98,000 traders were impacted by the market correction as they had positions in crypto exchanges like Binance, Bybit, HTX (previously known as Huobi Global), OKX, and Bitfinex. Among these platforms, OKX recorded the largest individual liquidation order for a BTC/USDT pair, which totaled an impressive $5.26 million.

Traders dealing with Ethereum suffered less severe losses compared to Bitcoin, totaling approximately $28.5 million. Short-term traders, who had bet on a decrease in ETH prices, faced the most losses as their predictions proved incorrect. The majority of these losses, around $15 million, were from short positions, while long positions resulted in about $13 million in losses due to forced liquidations.

The sudden change in the market didn’t just affect Bitcoin and Ethereum. Traders holding leveraged positions in various popular cryptocurrencies such as Solana (SOL), Dogecoin (DOGE), Sui, and Apecoin also experienced turbulence. Combined, these digital assets faced approximately $44.98 million in liquidations, with Solana traders losing around $11 million and Dogecoin traders facing about $12.77 million in losses.

Bitcoin Could See 10% Increase After US Election

Although Bitcoin experienced a decline in price on Monday followed by some sell-offs, market analysts continue to express confidence that Bitcoin may potentially increase by approximately 10% from its present value, irrespective of the results of the U.S. election scheduled for Tuesday, November 3.

Known cryptocurrency trader Daan Crypto Trades recently shared on X (previously known as Twitter) that although Bitcoin’s weekly close wasn’t perfect, this detail might carry less weight with the upcoming election. He pointed out that there’s a strong possibility for Bitcoin to surge or fall by at least 10% depending on the election outcomes.

On the following Tuesday, a significant election will take place, featuring Donald Trump, a previous U.S. President, and the incumbent Vice President going head-to-head. The outcome of this contest will decide who steps up to guide the nation once Joe Biden’s tenure concludes.

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2024-11-04 13:24