Cryptocurrency Liquidations Surge: $1.18 Billion Cleared Amid Sharp Market Declines

The global cryptocurrency market faced intense turbulence, leading to a surge in liquidations across derivatives trading platforms. Over the past 24 hours, the liquidation volume reached a staggering $1.18 billion (approximately KRW 1.63 trillion), as revealed by data on October 26. This massive liquidation wave, which predominantly impacted long (buy) positions, stemmed from widespread price drops in major cryptocurrencies, with Ethereum (ETH) bearing the brunt of the losses.

Ethereum Drives Liquidation Losses with $447.54 Million

According to data from CoinGlass, the total liquidation volume in the past 24 hours was $1.18795 billion. A significant majority, 90.1%, or $1.07966 billion, originated from long positions, while short (sell) positions accounted for a far smaller share at $118.26 million.

Among individual cryptocurrencies, Ethereum (ETH) saw the highest liquidation impact. The digital asset, trading at $3,950.79 after a 3.85% drop within the past day, accounted for $447.54 million in liquidations. Notably, $438.3 million of these losses stemmed from long positions. Bitcoin (BTC) followed closely, with a 2.69% dip to $10,9720 causing $277.87 million in liquidations, 96% of which came from long positions ($267.3 million).

Solana and Other Altcoins Suffer Amid Heightened Volatility

Beyond Ethereum and Bitcoin, several leading altcoins also experienced significant liquidations due to pronounced market volatility. Solana (SOL) led among altcoins, seeing its price drop 5.97% to $196.38, which triggered $87.21 million in liquidations. Ripple (XRP) sank 4.52% to $2.7688, resulting in $20.59 million liquidated, while Dogecoin (DOGE) dropped 4.77% to $0.22677, leading to $23.44 million in cleared positions.

Additional altcoins with noteworthy liquidations include:

• Hype (HYPE): Down 5.38% to $42,362, contributing $22.36 million in liquidations.
• Binance Coin (BNB): Declined 5.34% to $954.44, leading to $13.36 million liquidated.
• Avalanche (AVAX): Suffered an 11.26% plunge to $28.827, with $10.12 million in liquidations.
• Cardano (ADA): Decreased by 3.27% to $0.7788, triggering $7.32 million liquidated.
• Sui (SUI): Fell 4.82% to $3.166, contributing $6.8 million in cleared positions.

The broad-based declines highlight the vulnerability of altcoins to sharp volatility spikes, which continue to unsettle market participants.

Market Activity Surges Alongside Heightened Risk

The cryptocurrency market saw a sharp rise in trading activity, with total trading volumes surging by 58.19% from the previous day to reach $448.9 billion (approximately KRW 618 trillion). Despite this uptick in trading volume, open interest across the market dropped by 2.73%, settling at $198.5 billion (approximately KRW 273 trillion). The liquidation value for the 24-hour period spiked by an unprecedented 319.67%, showcasing the intense volatility that rattled traders.

Adding to the bearish sentiment, the Alternative Fear & Greed Index dropped further into the "fear" zone, registering just 28 points on October 26. This marks a steep decline from the 44-point "fear" rating recorded the day before. For context, the index stood at 53 points ("neutral") one week ago and 51 points ("neutral") the prior month, reflecting a growing sense of apprehension among investors.

Conclusion: A Struggling Market in Turbulent Times

The latest price declines and liquidation events underscore the inherent volatility of cryptocurrency markets, where sudden price fluctuations can rapidly amplify losses across the board. Dominated by Ethereum, Bitcoin, and Solana, the liquidation surge highlights the ongoing risks and challenges faced by long-position traders during bearish sentiment. As trading volumes spike and investor confidence dips, market participants must remain vigilant amid a landscape that continues to test their resilience.