Volatility in cryptocurrencies increases: Watch out for futures!

Traders who traded that the crypto market would continue to rise experienced the second-largest liquidation day of the month.

A total of $261 million worth of long positions were liquidated with the market decline on October 23. This figure was the second-highest liquidation in October after the $450.8 million long position liquidation on October 1 when Bitcoin fell 5 percent.

Ether suffered the biggest loss with $77 million worth of long transactions liquidated in 24 hours, while $58.3 million worth of long transactions were liquidated in Bitcoin.

The liquidations came shortly after Bitcoin reached its highest level in the last three months, approaching $70,000 on October 21. However, Bitcoin could not sustain this momentum and fell to $65,500 on October 23. It then recovered to $67,386, showing a 0.5 percent increase in 24 hours.

On the other hand, Ether ($ETH ) suffered the biggest loss among the 10 largest cryptocurrencies. ETH, which lost 1.7 percent in 24 hours and fell to $2,552, had risen to $2,620 during the day. ETH, which saw its highest level in two months, $2,750, on October 21, then started to decline.

On-chain data shows that high transaction fees on Ethereum negatively affected activity on the network, which reduced the demand for ETH staking and weakened investor optimism.

The volatile course in Bitcoin does not seem to have deterred institutional investors. According to CoinGlass data, 11 spot Bitcoin exchange-traded funds (ETFs) in the United States reported net inflows again on October 23.

While there was a net inflow of $198.5 million in total funds, there was an inflow of $323.6 million to BlackRock’s iShares Bitcoin Trust ETF (IBIT), but there were outflows of $99 million and $25.2 million from the ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) funds, respectively.
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