On October 22, the cryptocurrency market entered a deep correction, with both Bitcoin and Ethereum prices falling sharply and triggering a wave of large-scale leveraged long liquidations.
This market volatility pushed total liquidations within 24 hours up to $458.05 million, with the vast majority of forced closures involving bullish investors, reflecting the extreme vulnerability of highly leveraged longs during a downtrend.
Data showed that selling pressure was widespread across various digital assets. Bitcoin traded down to $81,018.49, a decline of 4.26%, while Ethereum fell 5.53% to $2,374.45. The total market capitalization of the entire cryptocurrency market shrank by 2.26% to $2.71 trillion. Of the $458.05 million in total liquidations, long positions accounted for as much as $417.93 million, while shorts made up only $40.11 million, with more than 103,000 investors facing forced liquidation. Binance accounted for 43.5% of total liquidations, with the single largest liquidation being a $11.78 million BTCUSDT long position executed at around $83,526.24.
From a time perspective, losses accelerated: long liquidations reached $153.58 million within 4 hours and rose to $278.37 million within 12 hours. By asset, Bitcoin-related liquidations totaled $140.62 million, of which 96.6% were longs; Ethereum liquidations amounted to $93.12 million, with 91.6% involving bullish positions. Other assets also came under pressure, with Zcash seeing $12.44 million in liquidations, Solana $11.29 million, and Ripple $7.47 million, as leverage significantly amplified losses when prices moved against expectations.
Despite the selloff in the spot market, institutional fund flows presented a completely different picture. On October 21, U.S. spot Bitcoin ETFs recorded $528.4 million in net inflows. Among them, BlackRock's IBIT attracted $234.99 million, while Fidelity's FBTC drew $212.71 million. During the same period, spot Ethereum ETFs saw $14.96 million in net inflows, though performance among individual funds diverged. This data indicates that even as prices declined, ETF demand remained strong, offering a long-term perspective different from retail panic. This is another signal of a significant divergence between institutional allocation logic and short-term speculative behavior following earlier volatility.
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