Uptober in the Mud as Traders Lose $850M Following Crypto Market Plummet

The world’s leading cryptocurrency, bitcoin (BTC), alongside other high market cap assets, have been on the downside for several days, resulting in massive losses for bullish leverage trades. According to data from CoinGlass liquidations tracker, the last 24 hours have been bloody for these traders as they’ve lost over $850 million.

$850 Million in the Mud

CoinGlass data shows that over 200,000 traders were affected by the market drop. The most significant single liquidation order happened on Hyperliquid, involving a trader who lost $15.49 million on a BTC-USDT trading pair. Notably, Hyperliquid was the most affected exchange, followed by Bybit and Binance.

Many traders who opened long positions on BTC with hopes of a price rebound lost about $180 million, accounting for approximately 20% of the total losses.

The most affected group was traders who held positions on ETHUSDT pairs across exchanges. The crypto experienced a 7% plunge in the past 24 hours, dropping from $4,380 to $4,070. As a result, these traders lost approximately $260 million, which accounts for over 30% of the bearish period.

On-chain security firm PeckShield identified one of the victims of the price dump who opened a long position on AAVE with a bullish outlook. As ETH dropped below the $4,100 mark, this trader lost 247.62 ETH valued at $1.05 million.

Is Price Recovery on the Way?

Notably, BTC first hit a new all-time high above the $126,100 mark on Monday as many institutional and individual investors massively acquired the crypto. This further boosted the community’s confidence in having a bullish tenth month of the year, which has been nicknamed “Uptober.”

However, recent market movement speaks otherwise. At press time, BTC trades at around $117,500, dropping by approximately 7% from its latest record high. This has raised concerns about whether it is going to be “Uptober” or “Dumptober.”

Amid the confusion, investors have not given up entirely on their expectations of an uptrend before the month runs out. CoinMarketCap shows that the market fear and greed index (FGI) still hangs around 54, signaling a neutral stand as investors and traders carefully observe the market before deciding the next step. 

Moreover, many investors seeking indirect exposure have displayed resilience by acquiring shares of U.S.-approved crypto investment funds despite the declining market. 

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