Crypto Traders Suffer Over $100M in Liquidation Losses as Market Rout Deepens Amid Middle East Turmoil

Ether (ETH) dropped near 4% Monday, while some altcoins endured even greater declines before reverting as rising geopolitical turmoil weighed on crypto markets.

AccessTimeIconOct 9, 2023 at 6:29 p.m. UTC
Updated Oct 10, 2023 at 3:55 p.m. UTC

Cryptocurrency traders suffered over $100 million of losses from liquidations during Monday’s market rout as digital asset prices tumbled amid an escalating war in the Middle East.

Some $105 million of long positions – traders who bet that prices would rise – were wiped out as of the U.S. afternoon, CoinGlass data shows. This was the largest amount of long liquidations in a day since Sept. 11.

The liquidations happened as crypto prices tumbled as the fight between Israel and Hamas and rising turmoil in the region jolted investors, weighing on risk assets. The largest digital asset, bitcoin (BTC), was down over 2% before climbing back to $27,600. At one point, ether (ETH) slid almost 5% and large-cap cryptocurrencies solana (SOL), Polygon’s native token (MATIC) and Polkadot’s (DOT) endured 6% to 7% declines. They rebounded some later.

Liquidations occur when an exchange closes a leveraged trading position due to a partial or total loss of the trader’s initial money down, or "margin," because the trader fails to meet the margin requirements or doesn't have enough funds to keep the position open.

ETH derivatives traders took the brunt of the losses, as falling prices spurred $32.78 million of longs liquidated over the past 24 hours, according to CoinGlass. The largest single liquidation order was a $4.5 million ETH-BUSD long on crypto exchange Binance.

Some $18.25 million worth of BTC long positions were liquidated, followed by bitcoin cash (BCH) and Bancor’s (BNT) token, with more than $3 million liquidated for both.

Edited by Nick Baker.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.