Key Notes
- $1.4 billion USDT entered the largest crypto exchange in 24 hours.
- Crypto liquidations plunged to nearly $500 million.
- Bitcoin and Ethereum see mild gains as the market-wide volatility cools down.
After losing roughly $400 billion in 24 hours, the crypto market is finally seeing a modest incline with expectations of a recovery.
Cryptocurrency traders and investors deposited 1.4 billion USDT tokens via ERC-20 to Binance over the past 24 hours, according to data from Coinglass. The total amount of USDT deposits into centralized crypto exchanges reached $1.81 billion.
A sudden increase in stablecoin inflows typically signals a potential accumulation of Bitcoin (BTC) and altcoins.
The USDT deposits come as crypto liquidations, which reached a record $19.35 billion on Oct. 11, declined by nearly 98%. According to data from Coinglass, the total cryptocurrency liquidations plunged to $507 million over the past day.
When liquidations decline, traders typically wait for a catalyst to move the market. This consequently decreases the volatility.
Are the Bulls Coming Back?
This market-wide wipeout wasn’t a simple correction.
The cryptocurrency market lost around $400 billion of its value in just 24 hours on Oct. 11, according to data from CoinMarketCap. The market sentiment dropped from a neutral zone of over 50 to its current 31, indicating fear, uncertainty, and doubt among investors.
And it wasn’t just crypto. S&P 500 dropped 2.7% to $6,552, and Nvidia’s stock fell 4.9% to $183, according to Trading Economics data.
The massive selloff, across multiple financial markets, was triggered after US President Donald Trump threatened to impose increased tariffs and other “countermeasures” on China.
The news immediately sparked fears of an economic slowdown, prompting investors to sell risky assets like crypto to avoid losses.
However, some leading crypto assets have started to see small gains.
Bitcoin rose from $109,715 to $111,530. Ethereum (ETH) recovered from its local low of $3,650 to $3,830.
If the stablecoin inflows gain momentum, a market-wide recovery would be expected, unless macro pressure pushes financial markets deeper into the trenches.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.
