The cryptocurrency market has begun to recover after a tumultuous weekend, marked by a significant wave of liquidations that resulted in approximately $20 billion being wiped out from open positions. This sudden downturn led to a substantial decline in the value of major digital assets, but they have since regained some of the lost ground.
According to data from CryptoSlate, Bitcoin experienced a notable increase of over 3% within a 24-hour period, with its price rising to around $115,342 after plummeting towards $105,000 on October 10. Similarly, Ethereum saw a strong rebound, with its price surging by 9% to $4,180 after dropping to nearly $3,500 over the weekend. These price movements indicate a sense of recovery and stabilization in the market.
Market Recovery and Liquidations
Among the top 10 digital assets, BNB led the charge with an impressive jump of 16.85% to a new all-time high, while Dogecoin and Cardano both gained over 10% each. However, not all assets experienced the same level of growth, as Tron only saw a modest increase of 2.5%, highlighting the uneven nature of the market’s recovery.
Despite the price recovery, the crypto market still witnessed significant liquidations, with nearly 190,000 traders being liquidated in the last 24 hours, resulting in a total loss of over $626 million. The most substantial single liquidation was a $7 million ETH-USD position on Binance, underscoring the intense volatility and risk associated with the market.
Expert Insights and Market Outlook
Timothy Misir, head of research at BRN, provided valuable insights into the market rally, stating that it reflects a combination of short-covering and selective accumulation. According to Misir, large investors are buying opportunistically, while many retail players are left out, and the market’s structural health still depends on robust spot demand, ETFs, government bonds, and corporate purchases, as well as time for liquidity to normalize.
Nick Forster, the founder of options trading platform Derive.xyz, warned that volatility in Bitcoin and Ethereum options has increased sharply following last week’s shocking market collapse. This indicates the expectation of volatile weeks ahead, as the recent sell-off has disrupted normal volatility patterns, and traders have started to hedge aggressively.
Forster noted that some investors are beginning to anticipate the possibility of Bitcoin falling below $100,000, while ETH traders are more pessimistic, expecting significant buying of $2,600 puts for December. This bearish sentiment is reflected in the options market, with strong buying at $115,000 and puts at $95,000 for expiration on October 31st, along with a sharp reversal from call buying to call selling at the strike price of $125,000 (expiring on October 17th).
For the latest updates and analysis on the cryptocurrency market, visit https://cryptoslate.com/bitcoin-and-ethereum-rally-after-market-crash/
