CryptoQuant announced: October 10 Crypto Collapse 2.3 Billion Dollars

On October 10, 2023, the sharp decline in the cryptocurrency markets caused great concern among investors. According to claims circulating on social media platforms, it was stated that a liquidation of 19 billion dollars occurred in the system. However, data provided by CryptoQuant revealed that this figure does not reflect the reality.

Analyst Carmelo Alemán explained that the 19 billion dollar liquidation actually represents the nominal value of leveraged positions on exchanges and does not represent the real capital lost. In other words, the losses were calculated based on the total volume of positions opened by investors through borrowing. On-chain data indicates that the actual liquidation amount on October 10 was only 2.31 billion dollars.

As a result of this event, there were liquidations of 1.05 billion dollars in long positions and 133.6 million dollars in short positions on Bitcoin (BTC), while on Ethereum (ETH), 895 million dollars in long positions and 229.7 million dollars in short positions were closed. However, these liquidation figures remained far below the record for the largest liquidation in history, which was 3.09 billion dollars on April 18, 2021.

Alemán assessed the decline on October 10 as a strong correction, noting that such events can be exaggerated to create fear. He emphasized that this liquidation process was relatively limited compared to the crash experienced during the Covid period. Analysts suggest that such situations should be approached with careful analysis; otherwise, market panic could escalate further.

For investors, it is important to be prudent when evaluating such information, as well as to consider market dynamics and critical price levels. Particularly, the lessons that can be drawn from the movements of Bitcoin and Ethereum on October 10 may be useful for managing potential risks in the future.