Crypto Market’s Sharp Price Retrace Leads to $500 Million in Liquidation, Here’s the Catalyst

The Crypto market registered a sharp price correction earlier today with the majority of the coins turning red from green within an hour. The majority of the tokens retraced between 7%-15% and currently looking to consolidate. Bitcoin price fell by 6% to record a new weekly low of $58,774, while Ether fell 5%. SHIBA INU  along with AAVE and 1Inch were the only altcoins in top-20 to maintain a double-digit gain amid the red crypto market.

The sharp price correction led to over $500 million worth of crypto leveraged positions getting liquidated. The high liquidation majorly came from long positions given the market was quite saturated and moving with confidence.

While the liquidation amount is comparatively lower than the flash crash seen in May-June, but still it managed to break key support zones of several cryptocurrencies including BTC, ADA, XRP, and several others.

Asia Pacific Stock Market Behind Crypto Price Correction?

The main catalyst behind the current market correction is being speculated to be the Asia Pacific stock market which recorded a sharp correction earlier as well. The market sentiments often seem to carry forward into the crypto as well, and given Asian traders are currently active, the theory seems to be true.

This is the first major correction for the crypto market in the past month. After a bearish September, the crypto market recovered fast with the start of October regaining its $2 trillion market cap setting new ATHs. Bitcoin was among the biggest gainers this month as it started under $45K and went on to set a new ATH just under $67K. Shiba Inu is another major cryptocurrency that has defied market odds to surge 666% in October.