WATCH THE VIDEO HERE The cryptocurrency market suffered a significant fall on Friday as traders appeared to be cutting back on their long holdings following notable spikes. Bitcoin was unable to maintain its overnight record high of $73,700, declining 4% for the day. Recent price action suggests that Bitcoin may drop further and retest its next major support level near $66,000 if it closes below the $69,700 mark during Asia’s trading session. In the past day, 90,456 traders were liquidated, resulting in $276.84 million in losses. The largest single liquidation order occurred at Binance, valued at $11.3 million in BTC/USDT. “Crypto liquidation” refers to the forced closing of a trader’s market positions. This occurs when a trader’s margin account cannot support their open positions due to significant losses or insufficient margin to meet maintenance requirements. The exchange or brokerage may initiate the liquidation process if a trader’s account falls below the necessary margin threshold. The trader’s positions will be forcibly closed at market price to cover losses and unpaid debts. Surprisingly, Bitcoin’s gains continued in October. By the end of Q3 2024, prices had risen against all odds, with Bitcoin increasing by about 14% in the past month—roughly half of what was observed the previous year. These investors’ balances have been declining since May 2023, when retail holdings increased by 27,000 BTC. Retail investors experienced periods of strong growth prior to this decline, including the market recovery following the COVID-19 crash in April 2020, the peak of the preceding bull cycle in April 2021, and the bear market in 2022, marked by the collapse of the bankrupt cryptocurrency exchange FTX. Ethereum’s Price Action Ethereum’s price approached its crucial support level of roughly $2,500 on Friday after plunging more than 5%. This level is significant as it closely matches the 50% price retracement level at $2,485, the ascending trendline (formed by connecting multiple lows since early September), and daily support at $2,420. Impact on Crypto-Related Stocks Losses were also evident in stocks linked to the crypto industry. Shares of cryptocurrency exchange Coinbase (COIN) and Robinhood (HOOD) dropped 7% and 15%, respectively, after missing earnings forecasts. Bitcoin miners Cleanspark (CLSK), Riot Platforms (RIOT), and MARA Digital (MARA) also experienced declines of 5% to 10%.
Crypto Bloodbath: Traders lose $277 Million, Bitcoin crashes below $70K
