Key Notes
- $1.4 billion USDT entered the largest crypto exchange in 24 hours.
- Cryptocurrency liquidations plunged to nearly $500 million.
- Bitcoin and Ethereum see slight gains as market-wide volatility calms.
After losing around $400 billion in 24 hours, the crypto market is finally seeing a slight incline with the expectation of a recovery.
Cryptocurrency traders and investors deposited 1.4 billion USDT tokens via ERC-20 on Binance in the last 24 hours, according to Coinglass data. The total amount of USDT deposits in centralized crypto exchanges reached $1.81 billion.
A sudden increase in stablecoin flows typically signals potential accumulation in Bitcoin (BTC) and altcoins.
The USDT deposits come as crypto liquidations, which reached a record $19.35 billion on October 11, have declined by almost 98%. According to Coinglass data, total cryptocurrency liquidations plunged to $507 million over the past day.
When liquidations subside, traders typically wait for a catalyst to move the market. This therefore reduces volatility.
Are the bulls coming back?
This market-wide wipeout was not a simple correction.
The cryptocurrency market lost approximately $400 billion of its value in just 24 hours on October 11, according to data from CoinMarketCap. Market sentiment has fallen from a neutral zone of over 50 to its current level of 31, indicating fear, uncertainty and doubt among investors.
And it wasn’t just crypto. The S&P 500 fell 2.7% to $6,552 and Nvidia’s stock fell 4.9% to $183, according to Trading Economics data.
The sell-off, across several 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 top 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 stablecoin flows accelerate, a market-wide recovery would be expected, unless macroeconomic pressure pushes financial markets deeper into the trenches.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article is intended to provide accurate and current information, but should not be considered financial or investment advice. Because market conditions can change quickly, we encourage you to verify the information for yourself and consult 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 credit and his work has been featured in some of the leading media outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Besides reporting, Wahid likes to connect the dots between DeFi and macro in his newsletter, On-chain Monk.
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