Crypto Liquidations Nearly at $10B Amid Trade Wars; What’s Next?
The cryptocurrency market witnessed a massive forced liquidation on October 11, resulting in over $9.5 billion being liquidated from the market. According to CoinGlass data, more than 1.5 million traders were liquidated in the past 24 hours, with long trades totaling over $8 billion. Bitcoin and Ethereum recorded liquidations of $2.46 billion and $2.24 billion, respectively.
The largest single liquidation occurred on HTX, involving a BTC/USDT pair valued at approximately $87 million. This sudden market selloff was triggered by United States President Donald Trump’s announcement of a fresh trade war with China. Trump revealed plans to impose a 100% tariff on goods from China starting on November 1, leading to panic selling and a bearish outlook among whale investors.
However, the market rebounded after Trump hinted that his meeting with China’s President Xi was still a possibility. Analysts anticipate a full rebound in the crypto market, with a potential parabolic rally once capital rotation from gold begins. The price of gold has been hovering at overbought levels, suggesting a likely consolidation and reversal ahead.
Crypto analyst Benjamin Cowen predicts that Ethereum may lead the altcoin market to new all-time highs following the flash selloff. The bullish sentiment is further supported by the expected approval of several spot altcoin ETFs in the United States. This approval, coupled with adjustments made by fund managers to include sponsor fees, indicates a positive outlook for the crypto market.
In conclusion, despite the recent market turmoil, experts remain optimistic about the future of cryptocurrencies. Investors are advised to conduct thorough research before making investment decisions, as the market continues to evolve rapidly. Stay updated with the latest cryptocurrency and blockchain news from trusted sources like CoinPedia to make informed decisions in this ever-changing landscape.
