The recent correction in the price of bitcoin (BTC), which positioned the digital asset below the $110,000 mark with a weekly drop of 5%, has caused an impact on the price of cryptocurrencies, also affecting the derivatives market.
This setback triggered a wave of total liquidations that, in the last 24 hours, reached $490 million on futures exchangescovering leveraged positions of bitcoin and the rest of the digital assets.
Below, the graph provided by the CoinGlass platform allows you to observe these liquidation movements, here operations in all cryptocurrencies are considered, not just bitcoin.
Liquidations occur when the price of a digital asset moves dramatically against the positions of leveraged traders, exceeding the available margin of collateral.
According to the mechanism explained in the NoticiasVE Cryptopedia, the exchange automatically closes these positions—whether long or short—to protect the operator from a negative balance.
This phenomenon, in addition to representing large losses for operators, acts as a catalyst that can deepen the fall in prices. Fire sales generated by liquidations suddenly increase supply in the market, adding downward pressure which aggravates the initial decline in the asset.
The bitcoin market is currently navigating a period of uncertainty driven by global geopolitical and macroeconomic factors. However, expectations are focused on the next meeting of the United States Federal Reserve (FED), scheduled for October 29.
There is strong anticipation that the FED could announce a reduction in interest rates. A downward adjustment would reduce the cost of credit, a move that has historically favored the flow of capital into financial markets. This context of more expansive monetary policy It is usually reflected in a boost for assets considered «risky», such as bitcoinwhich could counter the current bearish trend and mark a change of course for the digital currency.