$500,000,000 in Crypto Market Liquidations Reported by U.Today

October has begun with a sharp downturn in the cryptocurrency market, initially anticipated to be a bullish month known as Uptober. However, it’s quickly being referred to as Rektober due to a significant market collapse that occurred on the first day, wiping out $10 billion in market value and resulting in over $500 million in liquidations.

Major cryptocurrencies like Ethereum and Bitcoin were hit particularly hard, with Ethereum liquidations reaching $109 million and Bitcoin exceeding $140 million. Bitcoin faced a steep drop after failing to overcome resistance at $64,000, quickly falling to just above $61,000.

Despite earlier bullish expectations leading into this decline, Bitcoin now finds itself at a critical juncture. Many traders had been banking on a continuation of the bullish trends typically seen in October; however, the market seems to have miscalculated the onset of the month that usually brings positive momentum.

Current market indicators suggest that a fall below $60,000 could lead to further drops into the high $50,000 range. As it stands, Bitcoin is testing its support levels, while the high number of liquidations hints at a considerable number of overly leveraged positions being unwound.

In the hope of maintaining a bullish trend, many traders opened long positions, but the rapid market reversal has intensified the downward pressure on these positions. Recent data shows that the majority of liquidations were tied to long positions, reflecting widespread expectations for an October rally.

The critical question remains whether Bitcoin can sustain its upward trajectory above key support levels. For the market to stabilize and recover from the recent liquidation shock, it is essential for Bitcoin to remain above the $60,000 threshold. A recovery could reignite hopes for a late-month rally, but falling below this level could lead to a more severe decline.