Crypto Liquidation Surges to Above $500M as Middle East Tension Escalates

Despite the Uptober hype, Bitcoin and the broader crypto market is red at the moment as strong bearish sentiment sweeps across the industry. 

Per data from Coinglass, over $500 million has been liquidated in the crypto market in the past 24 hours following a sharp fall in Bitcoin, Ethereum, and other crypto asset prices. 

Bitcoin experienced a notable drop to $60,000 while altcoins like Ethereum and Solana also fell sharply, spiking position liquidations. ETH decreased by 5.05% to $2,480, while SOL fell over 5.04% to $144.

The sharp price decline spiked position liquidation in the crypto market, with long positions majorly affected. In the past 24 hours, the total liquidations sits at $562.85 million. 

Bitcoin leads Liquidation Chart

As expected, Bitcoin led the liquidation heatmap in the last 24 hours, with $145.68 million of positions involving the premier asset chalked off the market. Notably, about $128.7 million worth of longs and $16.98 million in shorts were affected.

Ethereum also saw significant trader liquidations from the market downturn. About $121.83 million positions have been liquidated, with $109.59 million long and $12.24 million short. 

Solana and SUI traders also saw substantial amounts liquidated in the past 24 hours, with positions worth $20.12 million and $12.99 million affected respectively. 

It is worth mentioning that Binance accounts for the largest amount of liquidation among trading platforms, with $260 million in positions wiped off within the last 24 hours.

Market Downturn Amid Middle East Tension

The surge in liquidation occurred following the unsettling atmosphere in the Middle East. Iran launched missiles at Israel on Tuesday, raising tension over the prospect of a possible World War 3. 

The fierce rivalry between Israel, Iran, Lebanon, and Palestine has persisted for a while. Israel’s attempt to eliminate the Hamas group in Gaza earlier this year has spread to other countries, including Iran and Lebanon. Notably, this conflict has impacted the worldwide economy, including cryptocurrency.