Key Insights
- Crypto market capitalization fell nearly 5% to $2.76 trillion as U.S. inflation reached 3.7% in September.
- Crypto liquidations reached $942.1 million over 24 hours, with bullish positions accounting for 91.6% of the total.
- Bitcoin and Ethereum ETFs recorded combined net withdrawals of $390.97 million on Oct. 14.
The crypto market declined sharply on Oct. 15 after stronger U.S. inflation renewed concerns about Federal Reserve interest rate increases. Bitcoin fell toward $81,000, while Ethereum and several major altcoins recorded steeper losses.
CoinGlass data showed approximately $942.1 million in leveraged positions liquidated over 24 hours. Meanwhile, U.S. spot Bitcoin and Ethereum ETFs recorded nearly $391 million in combined withdrawals.
The sell-off coincided with substantial declines across Asian technology stocks. South Korea’s KOSPI plunged 7.57%, while Japan’s Nikkei 225 lost approximately 4.9%.
US Inflation Data Raises Interest Rate Concerns
The latest decline followed Wednesday’s U.S. Consumer Price Index report. The Bureau of Labor Statistics said annual inflation reached 3.7% in September, up from 3.4% in August. Consumer prices rose 0.6% during the month. Core inflation, which excludes food and energy, increased 2.6% from a year earlier.
Energy costs drove much of the increase. Gasoline prices climbed 9.1% in September, while the broader energy index rose 5.2%. Those figures raised fresh questions about the Federal Reserve’s next interest rate decision.
Higher borrowing costs can reduce demand for speculative assets, including cryptocurrencies. The reading remained above the central bank’s 2% target.
Crypto Liquidations Approach $1 Billion
The initial price decline triggered forced closures across leveraged derivatives markets. Early Thursday, CoinGlass recorded approximately $942 million in crypto liquidations over 24 hours. Long positions accounted for about $863 million, or nearly 92% of the total.
Borrowing allows traders to control larger positions with smaller deposits, but falling prices can quickly exhaust the collateral that supports those trades.
Ethereum led the liquidation figures with approximately $283 million in closed positions. Bitcoin followed with roughly $196 million. Exchanges close leveraged trades when falling collateral no longer supports the positions.
Those closures can generate additional sell orders, placing further pressure on prices. Outstanding Ethereum futures positions totaled approximately $30 billion, compared with $52 billion for Bitcoin during the period.
Bitcoin and Altcoin Prices Fall Alongside Global Stocks
Bitcoin price traded near $82,000 on Thursday after reaching approximately $84,025 in the previous session. Ethereum fell toward $2,350, while XRP traded near $1.34. Solana dropped toward $105. Zcash and several other altcoins posted double-digit percentage losses as selling spread beyond the largest tokens.
The broader crypto market lost nearly 5% of its value in one 24-hour, bringing capitalization to approximately $2.76 trillion.
Stock markets also faced heavy selling. South Korea’s KOSPI index closed 7.57% lower as major chipmakers declined. Samsung Electronics and SK Hynix lost approximately 9.5% and 11.1%, respectively. Japan’s Nikkei also fell about 5%.
Technology shares weakened across other markets, while investors reassessed inflation and interest rate expectations. South Korean authorities also convened an emergency meeting to review market conditions.
U.S. spot Bitcoin exchange-traded funds recorded $261.46 million in net outflows on October 14. Spot Ethereum funds posted another $129.51 million in net withdrawals during the same session. Together, the two groups lost about $391 million.
This article is for informational purposes only and does not constitute financial or investment advice.
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