Bitcoin Sees Record $20,000 Daily Price Swing Amid Massive Liquidation

Bitcoin plunged by over 18%, triggering record liquidations and a $1 trillion market cap wipeout amid a sharp crypto sell-off on October 10.

BTC
ETH

Summary

Bitcoin plunged 18.1% from above $126,000 to below $103,310 last week, marking the largest nominal liquidation event in crypto history. Ethereum also dropped significantly, and altcoins lost over 80% of their value. On October 10, the total crypto market cap fell by $1 trillion, driven by aggressive selling and a 2.5-to-1 seller imbalance. Bitfinex suggests a potential Bitcoin rebound if it stays above $110,000 but warns of a retest of $100,000 if not.

Terms & Concepts
  • Liquidation: The forced closing of leveraged positions when traders cannot meet margin requirements, often triggered by sharp price movements.
  • Spot Market: A market where financial instruments, such as cryptocurrencies, are bought and sold for immediate delivery, as opposed to futures markets.
  • Market Cap: The total value of a cryptocurrency, calculated by multiplying its current price by total circulating supply.