According to CoinDesk, crypto traders experienced the largest leveraged long wipe-out in three months on Tuesday as the ETF-fueled rally for digital asset prices reversed sharply lower. Over the past 24 hours, big declines across the board prompted over $307 million in liquidations of leveraged crypto long positions, according to data from CoinGlass. This was the largest amount of liquidated longs in a day since August 17, when bitcoin (BTC) plunged from above $28,000 to about $25,000 in the space of a few minutes.
Today's wipeout occurred as BTC tumbled 4% to $35,000 despite a generally supportive environment for risk assets following a cooler-than-expected October inflation reading that sent stocks sharply higher and bond yields substantially lower. The decline was broad-based across crypto, including ether's (ETH) 6% fall to below $2,000. The large amount of liquidations suggests that the sudden decline in prices caught most investors off-guard, with 88,667 traders getting flushed, as shown by CoinGlass data.
Bitcoin traders suffered the most liquidations at $133 million, followed by ETH traders with some $70 million. JPMorgan analysts said in a report last week that the recent rally in cryptocurrency prices was getting 'overdone,' as investors became overly optimistic about the spot BTC exchange-traded fund approval's impact on asset prices.
