The crypto market experienced another major wave of forced position closures. Over 24 hours, the total volume of liquidations reached $951.4 million. Of this amount, about $876.3 million came from long positions, that is, bets on further market growth.
Where the most was liquidated
The largest volume came from Ethereum. On ETH, positions worth approximately $286 million were forcibly closed. On Bitcoin, liquidations amounted to about $197 million. Solana accounted for approximately $31 million, and Zcash - about $19 million. Liquidation occurs when the collateral for a leveraged position is no longer sufficient and the exchange automatically closes the trade.
Bitcoin fell below $81,000
By the morning of October 15, Bitcoin was down about 3.6% and trading around $80,764. Ethereum was declining by approximately 6.5%, to $2,353. XRP lost about 4.7%. Solana was declining by approximately 4.8%. Zcash turned out to be one of the weakest major assets, losing about 12.8% and dropping to $1,101.
Why the market went down again
One of the main triggers was fresh US inflation data. The figures came in above expectations, which intensified concerns about the Fed's future policy. Immediately after publication, the probability of another rate hike already at the October meeting briefly rose to almost 50%. Later, expectations weakened somewhat, but pressure on risk assets remained.
Asia intensified the sell-off
Additional negativity came from Asian stock markets. South Korea's Kospi lost about 8% in the morning session. Japan's Nikkei 225 was declining by approximately 5.2%. Shares of Samsung Electronics and SK Hynix fell by more than 9%. This movement intensified the overall investor flight from risk and added pressure on cryptocurrencies.
Why longs were the ones hit
About 92% of all liquidations were in long positions. This shows that before the decline, the market was heavily skewed toward bets on growth. When the price began to fall, forced closures of longs amplified the movement. Each subsequent liquidation added additional pressure from sellers.
Leverage in the market is still high
Despite the large wave of closures, open interest remains significant. For Bitcoin, it is about $52 billion. For Ethereum - approximately $30 billion. This means that a large volume of leveraged positions is still present in the market, so the risk of new cascading liquidations remains.
What's next
The main reference point remains the future trajectory of the Fed rate. If the market continues to price in a longer period of high rates, pressure on Bitcoin and altcoins may persist. At the same time, it is important to monitor how quickly open interest begins to grow again after the current wave of liquidations. If traders quickly return to high leverage, the next sharp candle could again trigger a cascade of forced closures.
Did you short this night on your deposit?
Ethereum's drop of more than 6% in a day and Bitcoin's move below $81,000 provided strong intraday amplitude. For a prop trader, not only the direction forecast matters, but also the size of available trading nominal. In prop trading, a trader passes a paid evaluation, gains access to the company's trading account, and works within pre-established risk limits. It is worth understanding the mechanics in advance while the market remains in a regime of heightened volatility.