• Crypto liquidations reached $261M on Oct 23, with $203.5M from long bets, marking the second-largest liquidation in October.
  • Bitcoin fell to $65,500 on Oct 23 before bouncing back to $67,386, after approaching $70K, its highest in three months.
  • Ether saw $77M in liquidations on Oct 23, driven by high transaction fees and dampened demand for staking on its network.

October has been a volatile month for cryptocurrency investors, especially those depending on sustained market rise. Recent CoinGlass data show massive liquidations, totaling $261 million on October 23 alone. 

This figure includes over $203.5 million from long positions, marking it the second-largest liquidation event this month. The most substantial liquidation occurred on October 1, with $450.8 million lost due to a sharp 5% decline in the price of Bitcoin .

Ether (ETH) traders faced the most considerable losses, with liquidations surpassing $77 million in just 24 hours. Bitcoin (BTC) call options followed closely with approximately $58.3 million. This massive sell-off correlates with a brief spike in Bitcoin prices, reaching near $70,000 on October 21, only to plummet and settle around $67,386 after a 0.5% increase over the next 24 hours.

Ethereum Faces Setbacks Amid High Fees

Ethereum, one of the cryptocurrency market’s primary players, experienced large price changes. The currency’s market price was down by 1.7, falling to $2552 from the 24-hour high of $2560. Before this decline, Ethereum had risen to $2,750, its highest level in over two months on October 21. Experts believe that the constant increase in the transaction fees on the ETH network is probably discouraging people from interacting with the blockchain, thus creating a low demand for ETH staking.

These increased fees may have made Ethereum investors less optimistic and less active or engaging, leading to fewer transactions being completed in the Ethereum network. If high fees continue to be the norm, this trend could have long-term repercussions on Ethereum’s market stability and investors’ confidence.

Institutional Investors’ Stable Market Investing

Although the cryptocurrency market has experienced massive fluctuations and significant liquidation, institutional investors continue to show strong interest. On October 23, the U.S.-based spot Bitcoin exchange-traded funds (ETFs) experienced a net flow of $198.5m. 

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This was mainly led by a massive $323.6 million invested in BlackRock’s iShares Bitcoin Trust ETF. However, part of this trend has been the result of other funds entering the market, and it has been followed with redemptions such as the ARK 21Shares Bitcoin ETF and the Bitwise Bitcoin ETF recorded outflows of -$99m and -$25.2m, respectively.

The active participation by institutional investors suggests a continuous belief in the prospect of digital currencies, such as Bitcoin, irrespective of the prevailing market volatility. This investment pattern may be essential in supporting Bitcoin prices and ensuring the liquidity of cryptocurrencies.

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