The crypto industry has recently been through one of the worst days in its history. While Bitcoin and Ether holders have started to recover from the crash, small token investors are still taking a big hit.
According to data analytics firm CoinGlass, more than 1.6 million traders experienced liquidations totaling $19.37 billion in the 24 hours starting on October 10, making it the largest liquidity event on record.
Bitcoin and Ethereum are currently trading around 11% to 12% below their October 10 highs, with Bitcoin remaining above the critical $100,000 resistance level while Ether is still far from the crucial $4,000 price point.
Coins like XRP, Solana, Dogecoin and BNB, on the other hand, are trading between 15% to 24% lower than their initial crash levels.
Frank Chaparro, Head of Content and Special Projects at GSR, said the resilience of the two cryptocurrencies stems from the assets being more mature, stable and supported by investment products such as ETFs.
The big drop came after US President Donald Trump announced plans to impose massive tariffs on China on October 10, causing a rout in global financial markets.
For the crypto market, geopolitical shocks like this are not unusual, but this time the impact was more severe as many traders were trapped in highly leveraged positions, triggering what analysts described as a ‘doom loop’ in the digital market.
