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Market snapshot: rapid gains erased as liquidations surge
The cryptocurrency market saw an abrupt reversal after a short-lived rally, wiping out much of the intraday gains and triggering heavy liquidations across leveraged positions. Bitcoin briefly climbed above $113,000 on Oct. 21 before retreating, while Ethereum and BNB also lost momentum after reclaiming key levels.
Price action and key levels
At press time, Bitcoin traded near $108,543, Ethereum around $3,879 and BNB about $1,074, all below their intraday highs. Traders who chased the move higher were forced to unwind riskier, highly leveraged positions as volatility spiked, creating a cascade of forced selling across derivatives markets.
Liquidations, open interest and sentiment
Data from CoinGlass shows approximately $662 million in leveraged positions were liquidated over the past 24 hours — a 62% increase from the prior day and one of the largest single-day liquidation events since early October. Despite the sell-off, open interest rose marginally by 0.3% to $149 billion, indicating new positions are still being opened amid the churn.
The Crypto Fear & Greed Index plunged nine points to 25, signaling “extreme fear” among market participants. Meanwhile, the Altcoin Season Index nudged up to 29, suggesting that some altcoins are beginning to show early signs of resilience versus Bitcoin after recent turbulence.
What’s driving the volatility?
Analysts point to a mix of macro uncertainty and transient optimism that sparked the brief rally. Positive headlines around U.S.-China trade talks and renewed institutional interest helped push spot markets higher, but lingering concerns about inflation, liquidity and global macro conditions weighed on confidence.
ETF inflows provide short-term support
Institutional demand offered a glimmer of relief. U.S. spot Bitcoin ETFs registered $477 million in net inflows on Oct. 21, ending a four-day outflow streak. BlackRock’s IBIT led inflows with $210 million, Ark Invest’s ARKB added $162 million, Fidelity’s FBTC contributed $34.15 million and Bitwise’s BITB added $20.08 million.
Ethereum spot ETFs also saw a rebound, drawing $141.1 million in net inflows. Fidelity’s FETH led with $59.07 million, followed by BlackRock’s ETHA with $41.91 million. These inflows suggest institutions remain interested in accumulating crypto exposure despite short-term volatility.
Near-term risks and what traders should watch
Traders are cautious ahead of key U.S. events that could influence liquidity and risk appetite: the U.S. consumer price index report on Oct. 24 and the Federal Reserve meeting on Oct. 28–29. Market participants will be watching inflation data and any Fed signals for clues on policy direction.
In the current environment, risk management is critical. Volatility-driven liquidations underscore the dangers of high leverage, while sustained ETF inflows hint at underlying institutional demand that could support the next leg of market moves. For crypto investors, balancing exposure, monitoring open interest and keeping an eye on macro catalysts will be essential.
Source: crypto
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