Crypto selloff is cooling down, liquidations plunge 40%

The cryptocurrency market is showing signs of stabilization after a significant drop on Tuesday, Oct. 22, with a noticeable cooldown in liquidations. According to data from CoinGecko, the global crypto market capitalization saw a $57 billion decrease on Tuesday, falling to $2.44 trillion from a three-month high of $2.498 trillion just one day earlier.

This decline represents a 2.5% decrease in the total market cap over the past 24 hours, further erasing $7 billion in value. However, as the selloff that drove the drop begins to ease, liquidation data shows a marked reduction in market pressure.

Coinglass reports that total crypto liquidations have fallen by 40% in the past day, dropping to $121 million. Notably, 75% of these liquidations, amounting to $91 million, are tied to long positions, which reflects the market’s response to the recent downturn.

Bitcoin (BTC) is leading the market in liquidations, with $18.5 million in total—$11 million from long positions and $7.5 million from short positions—as the price dropped below the $67,000 mark. At the time of writing, Bitcoin is trading at $66,800, reaching a one-week low.

Ethereum (ETH) has experienced a high long-short ratio, with $11.2 million of its total $14.5 million in liquidations coming from long positions. Despite the bearish sentiment, ETH remains above the $2,600 psychological support level.

The largest single liquidation order of nearly $690,000 occurred in the Solana (SOL)/USDT pair on Binance, the world’s largest cryptocurrency exchange by trading volume.

Additionally, according to a crypto.news report, U.S. spot Bitcoin exchange-traded funds (ETFs) saw their first day of outflows, with a total of $79.1 million in withdrawals. The Ark and 21Shares ARKB fund accounted for the largest outflow, losing $134.7 million. Conversely, Ethereum ETFs saw a net inflow of $11.9 million, despite the overall market uncertainty.