The cryptocurrency market faced a sharp downturn on October 17, with total market capitalization plunging 7.3% to around $3.6 trillion, according to CoinMarketCap data. The slump — which erased nearly $1.23 billion in leveraged positions within 24 hours — marks one of the steepest single-day liquidations this month as traders rushed to de-risk amid rising volatility.
$1.23 billion in liquidations, mostly from long positions
Data from Coinglass shows that the majority of liquidations came from long positions, totaling approximately $920 million, while shorts accounted for around $309 million. In the past hour alone, liquidations exceeded $118 million, split almost evenly between longs and shorts — a sign of whipsawing price action and rapid market reversals.
Bitcoin (BTC) led the selloff with $74 million in liquidations, followed by Ethereum (ETH) at $26.5 million. Solana (SOL) and Hyperliquid (HYPE) posted smaller figures at $6.9 million and $3.2 million, respectively.
The Crypto Fear & Greed Index has dropped into “fear” territory at 23, edging close to “extreme fear” levels, as traders brace for further downside.
Altcoins extend losses amid cascading liquidations
Bitcoin’s drop below $110,000 early Friday triggered a wave of forced selling across the altcoin market. BTC briefly touched $105,000 before stabilizing near $106,000, posting a 4.7% daily decline.
Altcoins, which often move in tandem with Bitcoin, faced deeper losses:
- Aster (ASTER) plunged 16% in 24 hours and is down 32.7% this week, barely holding the $1 level.
- Polygon’s POL (ex-MATIC) has shown a mild rebound of 3.8% in the past hour but remains down 21.4% over the week.
- PLASMA (XPL) rallied 4.9% intraday yet remains 43% lower week-over-week.
- Hyperliquid (HYPE) traded flat at $35.36 but has dropped 8.5% over 24 hours and 22.4% in the past week.
Why the Crypto market crashed
Analysts point to a combination of cascading liquidations, profit-taking, and macro headwinds as key drivers behind the latest crypto market selloff. The correction follows a prolonged rally earlier in the quarter, which left heavily leveraged positions vulnerable to rapid unwinding.
As prices dipped below key technical thresholds, exchanges triggered automatic margin calls, fueling a self-reinforcing cycle of forced liquidations and further price declines.
Beyond technical factors, macro uncertainty is also weighing on sentiment. With the U.S. Federal Reserve signaling a potential delay in interest-rate cuts amid persistent inflation, risk appetite across speculative markets — including crypto — has deteriorated.
The current correction extends the bearish momentum that began after the October 10 crash, which wiped out nearly $19 billion in forced liquidations. As traders brace for further volatility, many are opting to lock in profits and reduce leverage, anticipating that a sustained recovery may take time to materialize.
