Mass Liquidations Impact Over 100,000 Traders Amid Crypto Market Downturn

Bitcoin’s price briefly dipped to an intraday low of $59,860 shortly after 9 a.m. EDT on Oct. 3, 2024. As of 1 p.m., the cryptocurrency is trading above the $60,000 mark, though it continues to face challenges in maintaining this key psychological level.

Crypto Market Sell-Off Drives Traders to Stablecoins

At 1 p.m. EDT on Thursday, bitcoin (BTC) is hovering slightly above the $60,000 mark, reflecting a 2.8% drop over the past 24 hours. The broader cryptocurrency market has experienced a 3.82% decline during the same period, with the total market value now at $2.09 trillion.

BTC/USD on Bitstamp as of 1 p.m. EDT on October 3, 2024.

In the last 24 hours, liquidations have been substantial, with $295.34 million in positions wiped out. Of those, $246.78 million were long positions, and BTC alone saw $44.92 million in longs erased. Over the past day, 104,856 traders were liquidated, according to data from coinglass.com.

Despite $121.25 billion in global trading volume, $88.32 billion of that is in stablecoins, indicating a shift toward safer, more stable assets. With a market capitalization of $1.191 trillion, BTC remains the tenth most valuable asset globally, surpassing Berkshire Hathaway’s (BRK-B) $975.84 billion valuation. However, if BTC’s market cap falls by $215.16 billion, BRK-B would overtake bitcoin in the rankings.

The ongoing conflict in the Middle East is contributing to volatility across global financial markets, including cryptocurrencies. Bitcoin and other leading digital assets have experienced heightened trading activity and price swings amid growing uncertainty. Some see bitcoin as a form of digital gold, providing a hedge against turmoil, while others are pulling back due to its speculative nature. Five minutes after 1 p.m. on Thursday, BTC again dropped below the $60K range.

What do you think about the latest crypto market action and the volatility this week? Share your thoughts and opinions about this subject in the comments section below.

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