Crypto selloff is cooling down, liquidations plunge 40%

The cryptocurrency market is stabilizing after the big drop on Tuesday, October 22. As a result, liquidations are showing signs of cooling.

Global crypto market capitalization lost $57 billion to $2.44 trillion yesterday, after hitting a three-month high of $2.498 trillion the day before, according to data from CoinGecko.

The global market value again faced a 2.5% decline in the last 24 hours, wiping out another $7 billion.

As Tuesday’s sell-off continues to cool, total crypto liquidations fell 40% over the past day to $121 million, according to data from Coinglass. Due to the market-wide crisis, 75% of the liquidations worth $91 million belong to long positions.

Crypto liquidations – October 23 | Source: Coinglass

Bitcoin (BTC) is leading the pack with liquidations of $18.5 million ($11 million long position and $7.5 million short position) as its price falls below the $67,000 level. BTC is trading at $66,800 at the time of writing, marking a one-week low.

Ethereum (ETH) saw a relatively high long-to-short ratio, with $11.2 million of its total liquidations of $14.5 million belonging to long trading positions. ETH is still trading above the $2,600 psychological zone despite the bearish trend around it.

The largest single liquidation order on the Solana (SOL)/USDT pair, worth almost $690,000, occurred on Binance, the largest crypto exchange by trading volume.

According to Crypto.news report, spot BTC exchange-traded funds in the USA recorded their first day of debut as the market-wide sentiment turned downward. Among these investment products, there was a net outflow of 79.1 million dollars, led by Ark and 21Share’s ARKB fund, while an outflow of 134.7 million dollars was realized.

ETH ETFs, on the other hand, witnessed net inflows of $11.9 million due to market uncertainty.