In a shocking turn of events, the cryptocurrency market experienced its largest liquidation event in history on October 10, as reported by CoinGlass. According to the results published in the material, this unprecedented crash has raised concerns about the stability and resilience of the market.
Massive Liquidations in the Crypto Market
According to CoinGlass, approximately $150 billion was liquidated from both long and short positions during this event, with over $19 billion attributed specifically to the October 10 crash. The overwhelming majority of these liquidations were long positions, which accounted for a staggering 90% of the total liquidations, underscoring the vulnerability of traders in a volatile market.
Limited Impact on Long-Term Prices
Despite the massive scale of the liquidations, the event had a limited impact on medium to long-term prices, suggesting that while the immediate fallout was severe, the overall market may be more resilient than it appears. Analysts are now closely monitoring the situation to assess potential long-term implications for Bitcoin and the broader cryptocurrency ecosystem.
As the cryptocurrency market grapples with the aftermath of the largest liquidation event in history, a significant $30 billion in crypto options is set to expire on Deribit, potentially influencing market dynamics. For more details, see this article.
