Digital Asset Derivatives Market Highlights Divergent Liquidation Trends and Risk-Averse Sentiment

Mixed Liquidation Patterns: ASTER Defies the Norm

The digital asset derivatives market displayed diverse liquidation trends over the past 24 hours, with cryptocurrencies like ASTER presenting notable exceptions to broader market patterns. Despite ongoing long-position liquidations, ASTER uniquely experienced substantial short-position liquidations. Comparing the heightened volatility from October 23, when long liquidations soared to $1.3 billion, the October 25 figure of $200 million marked a significant decrease. This period also saw slight contractions in both trading volume and open interest, indicating a moderation in overall market activity.

$281.87 Million Liquidated, Long Positions Lead Losses

Data from Coinglass (as of October 25, Korea local time) revealed a total of $281.87 million in liquidations over the previous 24 hours, reflecting a 4.49% rise from the previous day. Long positions bore the brunt of these losses, accounting for $199.42 million, while short positions contributed $82.44 million to the total. The continued dominance of long liquidations mirrors the pattern observed earlier in the week.

Ethereum and Bitcoin: The Heavyweights in Liquidation Volumes

Ethereum (ETH) led all cryptocurrencies in liquidation volume, with a total of $64.41 million. This was largely driven by a 2.14% price dip within the same period. Long liquidations dominated ETH's trend, amounting to $46.44 million (72.10% of the total), while $17.96 million was attributed to short liquidations.

Bitcoin (BTC) followed closely, with a total liquidation volume of $49.48 million. Of this, long liquidations made up $30.50 million, reinforcing the market bias towards long-position losses.

Altcoin Liquidation Trends: Solana Takes Center Stage

Among altcoins, Solana (SOL) topped liquidation volumes with $27.89 million, stemming from a 2.44% decline in its price. Long liquidations accounted for a staggering $23.15 million, highlighting the imbalance between long and short positions within the asset.

ASTER: The Contrarian Performer

ASTER stood out as a major outlier within the altcoin space. It experienced a 12.51% surge in price over the observed period, leading to $5.89 million in short liquidations—slightly exceeding its $5.59 million in long liquidations. This divergence from the market-wide trend of long-liquidation dominance underscores ASTER's unique performance dynamics. ASTER ranked 11th among altcoins in total liquidation volume, according to Coinglass data.

HYPE and Major Altcoins Maintain Long-Liquidation Dominance

Competitor HyperLiquid (HYPE) continued to see a liquidation pattern heavily skewed towards long positions. Its total liquidation volume stood at $1.68 million, with $1.34 million (79.76%) deriving from long-liquidated trades. Other prominent altcoins such as Dogecoin (DOGE), XRP, and Binance Coin (BNB) also reflected similar trends:

• DOGE: $11.56 million in total liquidations, driven by long positions.
• XRP: $7.93 million in total liquidations, with longs dominating.
• BNB: $2.27 million in total liquidations, also long-focused.

Market Activity Declines Amid Elevated Caution

The broader market experienced subdued trading volumes, with a total 24-hour volume of $276.1 billion—down by 1.39% from the previous day. Open interest also shrank marginally, declining by 0.84% to $204.5 billion. These trends reflect investors’ growing reluctance to open new positions in the wake of substantial long-position liquidations.

Over the same period, 128,160 traders experienced liquidations, with the single largest liquidation event involving $4.03 million in ETH-USD trading on the HyperLiquid platform.

Fear and Greed Metrics Capture Risk-Averse Sentiment

Investor sentiment data suggests heightened caution among market participants. The widely monitored Fear & Greed Index stood at 39, a level indicative of “Fear.” Meanwhile, the Relative Strength Index (RSI) for the market hovered at 36.16, registering as “Oversold.” These indicators point to prevailing risk-off behavior and hesitancy to re-enter positions amid ongoing uncertainty.

Outlook: Divergent Performances in a Risk-Averse Market

The liquidation dynamics over the past 24 hours underscore a market environment increasingly characterized by risk-averse sentiment. High-cap cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) continued to face price pressures, translating to prominent long-position liquidations. Meanwhile, altcoins like ASTER demonstrated asset-specific divergences, seizing opportunities for growth and drawing attention due to their unusual short-liquidation trends.

Declines in trading volume and open interest further illustrate a strategic pullback by traders, who appear to be prioritizing portfolio preservation over speculation. While event-driven price movements in specific assets may generate localized volatility, the broader market tone suggests an overarching focus on risk mitigation. As uncertainty persists, a cautious “wait-and-see” approach is likely to remain dominant across the digital asset derivatives landscape.