Crypto market bloodbath just erased $60 billion in an hour

Late on October 6, the cryptocurrency market suffered a sudden bloodbath that dropped the total valuation of digital assets from $2.88 trillion to $2.82 trillion within a single hour, a $60 billion wipeout.

Zooming out, the losses grow even larger with the drop between the Tuesday $2.92 trillion high and press time on Wednesday, October 7, amounting to $100 billion.

Total cryptocurrency market valuation five-day chart. Source: TradingView

Additionally, CoinGlass data shows that, within the last 24 hours, as many as 106,952 were ‘rekt’ with liquidations – the majority of which held long positions – amounting to $608.34 million.

Furthermore, out of the daily total, as much as 86.69% – $527.39 million – occurred within the previous 12 hours. Ethereum (ETH) traders were the most affected – $209.89 million – and Bitcoin (BTC) was close behind at $138.88 million.

Cryptocurrency market liquidations within the previous 12 hours. Source: CoinGlass

Top cryptocurrencies drop between 2% and 5% in 12 hours

Looking at the price action of individual cryptocurrencies, BTC fell 2.19% – by nearly $1,900 – within the previous 12 hours to $83,665, and ETH suffered a 4.33% crash from $2,697.37 to $2,580.68.

Bitcoin and Ethereum short-term price charts. Source: Google

XRP fared somewhat better, having fallen 3.09% from $1.50 to $1.45, and Solana (SOL) slid 2.57% from $120.80 to $117.69 within the same timeframe.

XRP and Solana short-term price charts. Source: Google

Notably, in the case of all four cryptocurrencies, the crash proved sudden but short-lived, and the prices appear to have stabilized by press time on October 7, albeit universally in lower ranges.

Top trading expert urges followers to ‘buy the dip’ after crypto market bloodbath

Meanwhile, some prominent on-chain experts appear to believe the latest bloodbath is just a temporary correction ahead of a continued rally.

For example, Ali Martinez published an X post on Wednesday morning regarding Bitcoin’s price action, urging his followers to ‘buy the dip.’

This particular recommendation appears tied to a Tuesday thread which highlighted significant ‘whale’ accumulation and BTC finding a support zone between $83,300 and $84,600 as signs of a bullish setup.

With Bitcoin remaining above the lower bound of the support, Martinez appears to consider a breakout above $86,700 plausible in the foreseeable future, as well as the subsequent expected upsurge to approximately $105,000 – 25.50% above the press time price of $83,665.

Featured image via Shutterstock

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