Crypto Liquidations Hit $610M Amid Long Squeezes
Crypto liquidations reached nearly $610 million within 24 hours, heavily impacting leveraged bullish positions ahead of key macroeconomic events, according to a report by AMBCrypto. Long positions accounted for $545 million of the recent losses, while short-sellers lost only $63 million.
This market wreckage follows a series of liquidation spikes observed since late September, including a $580 million loss event on October 2 that coincided with a weaker United States jobs report. Analysts note that long squeezes have intensified in October, driven by caution ahead of the Federal Open Market Committee meeting minutes, the U.S. 30-year bond auction, and upcoming inflation data.
Despite the short-term turbulence, the broader futures market is currently less frothy compared to the third quarter. Funding rates for major assets like Bitcoin have dropped significantly, reducing the immediate risk of catastrophic liquidation cascades. Bitcoin funding rates fell from 7 percent to below 1 percent, while Ethereum funding rates retreated to 10 percent.
Market consensus currently points to a high probability of an interest rate pause by the Federal Reserve, though uncertainty remains over whether the stance will lean hawkish or dovish. AMBCrypto reports that Bitcoin prices remain structurally bullish as long as they hold above the May peak of $82,000 and the 50-week moving average. However, analysts warn that continued profit-taking and lower liquidity pools around $83,000 could still expose leveraged bulls to further downside risk leading into the upcoming consumer price index report and the late October Fed rate decision.
Based on reporting by ambcrypto.com.
