- Significant deleveraging event in October.
- Over 2 million accounts liquidated.
- No immediate signs of market recovery as seen in 2022.
Tom Lee, Fundstrat Global Advisors’ Co-Founder, revealed on “The Compound” podcast that a major crypto market deleveraging occurred on October 10th, leading to massive account liquidations.
The event, surpassing the FTX collapse, has left the crypto market struggling, with ongoing selling pressure and no immediate recovery signs, affecting major assets like Bitcoin and Ethereum.
Over 2 Million Accounts Liquidated Amidst Impactful Market Downturn
October 10th marked a critical moment for the cryptocurrency markets, according to industry expert Tom Lee. He identified the significant deleveraging event that outstripped the FTX collapse as a major issue. This error-triggered liquidation resulted in 2 million account liquidations and a notable reduction in market maker activity.
The crypto ecosystem continues to face challenges as the selling pressure has yet to dissipate completely. Although the market is attempting to rebound, there are reportedly no signs of a significant recovery akin to the 8-12 week recovery period witnessed in 2022.
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While specific key players haven’t been identified, Tom Lee’s insights during the podcast have attracted industry attention, highlighting the severity of the issue. As the ecosystem looks for stabilization, the broader market reactions remain cautious and uncertain.
Market Data and Insights
Did you know? The October deleveraging event led to the liquidation of over 2 million accounts in a single day, making it one of the largest in crypto history, according to Tom Lee.
Bitcoin, listed at $78,507.37, shows a decline of 5.39% in 24 hours, as per CoinMarketCap. The total market cap stands at $1.57 trillion, and a 51.84% increase in the 24-hour trading volume to $75.06 billion suggests fluctuating investor interest.
The error-triggered liquidation resulted in 2 million account liquidations and a notable reduction in market maker activity.
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Source: https://coincu.com/markets/bear-market-october-deleveraging/