The crypto market witnessed a sudden downtrend today, with a 2.30% fall in Bitcoin (BTC) and 6% to 10% bleed in altcoins, totalling over $1.7 billion in liquidations. The Coinglass data shows a $1.615 billion wipeout in longs and $85.88 million in shorts within just 12 hours. Among the liquidations within 390,180 traders, the largest one was an order that happened on OKX – BTC-USDT-SWAP valued $12.74M.
According to market experts, the macroeconomic conditions and the profit-taking momentum ignited the sell-offs, creating recession fears and triggering the liquidation of large leveraged long positions. While the crash is considered by many price prediction experts as a dip before the anticipated Uptober rally, others warn about a severe crash.
$1.7 Billion Liquidations Disrupt the Uptober Altcoin Rally
For a while, the altcoin market was gaining significant momentum, with the Altcoin Season Index (ASI) surging to 80 and the top altcoins outperforming Bitcoin. Major tokens such as BNB reached their all-time high, XRP and Solana witnessed spectacular on-chain activity, and Ethereum regained its momentum. However, the sudden liquidations ended the altcoin uptrend, with the Altcoin Season Index slowing down to 62/100.
Ethereum lost nearly $500 million for the day, with the price reaching below $4144. It was followed by top altcoins like XRP, SOL, and ADA. Despite the short-term reversal, Ethereum is still considered bullish for the long term due to its strong fundamentals, growing institutional adoption, and its significant technological upgrades.
With October being just eight days away, traders are pessimistic about the altcoin frenzy regaining its momentum within such a short period. However, as an unpredictable market with high volatility, the possibility of an Uptober altcoin cannot be fully dismissed.
Also read: Why is Crypto Going Down? BTC, Ether, XRP Crash
Crypto Market’s Current Scenario: Bearish Trend Continues
At present, the crypto market is 3.6% down, with short positions dominating the orderbook. The total market capitalization reduced to $3.89 trillion due to leveraged washout, increasing panic among traders. While the overall market sentiment is bearish, the Fear and Greed Index remains neutral. Contrary to the anticipated altcoin bull run, most of the altcoins are lagging behind the bull run. However, major analysts reassure that the crypto market is bullish for the long run.
- Fear & Greed Index – Neutral (47)
- MACD – Bearish
- Average Crypto RSI – 29.16 (Oversold)
- Bitcoin Dominance – 57.8%
- Ether Dominance – 13.0%
- Crypto ETFs Net Flow – + 274.9 million
- Altcoin Season – 62/100