Market Analysis

Crypto Markets Absorb Sharp Leverage Reset

Crypto markets are absorbing a sharp leverage reset as Bitcoin's decline triggers heavier losses across major assets. The decline in price action extended to derivative markets, as over $550.53 million was liquidated across crypto markets within 24 hours. Of that lot, over $484.6 million of this was comprised of long positions.

Impact on Bitcoin and Ethereum

Bitcoin followed closely behind, with liquidations totaling $144.67 million. Ethereum recorded the largest share of liquidations at $176.20 million after falling below the $2,600 mark. These moves simply imply that the impact of the downside spilled beyond BTC.

Fear and Greed Index

The Fear and Greed Index stood at 63 at press time, after declining from 67 on the 6th of October. More importantly, it is clear that the index rose to over 80 at the end of August before retreating sharply. For now, fading greed reflects caution rather than capitulation.

Conclusion

Stability in prices will be the next factor in either building new levels of confidence or creating additional weakness. Muriuki Lazaro is a on-chain data analyst with a B.Sc. in Data Science. Muriuki specializes in dissecting complex on-chain data into clear and accurate insights for readers in the crypto ecosystem, with a particular focus on Bitcoin.