Asian stock markets plunged sharply, with close to $1 billion in leveraged crypto positions liquidated. After the CPI surpassed expectations, the market is reassessing the pricing logic of risk assets.
On October 15, South Korea's KOSPI Index saw intraday losses reach around 8%, while Japan's Nikkei 225 Index dropped over 5% during trading. The sell-off in Asian equities compounded with weakness in U.S. tech stocks, and market attention is focused on AI sector valuations, financing pressures, and the Federal Reserve's rate trajectory.
The crypto market came under simultaneous pressure. Bitcoin at one point fell below $81,000, and Ethereum dropped to about $2,350. In the past 24 hours, the total amount of crypto liquidations approached $1 billion, with the overwhelming majority coming from long positions.
Concentrated long liquidations, ETH under greater pressure
According to CoinGlass data, in the past 24 hours, approximately $951 million in crypto positions were liquidated, of which about $876 million were from longs.
Ethereum was one of the most impacted assets. ETH-related liquidations totaled about $283 million, with more than $261 million from long positions. Bitcoin-related liquidations amounted to roughly $196 million.
This wave of liquidations reflects that the previously accumulated leveraged longs were closed out en masse as prices declined rapidly. Forced liquidations further increase sell-side pressure, amplifying price volatility.
However, the scale of liquidations itself does not indicate that the market has bottomed. Going forward, it remains to be seen whether spot buying can absorb the selling pressure and whether leveraged positions will accumulate again.
Hot CPI reading brings back-and-forth in rate expectations
Macro pressure stems from the U.S. September inflation data.
U.S. headline CPI rose 3.7% year-on-year, and core CPI increased 2.6% year-on-year, both beating market expectations. After the data release, the market temporarily increased bets on a Federal Reserve rate hike, the U.S. dollar strengthened, and risk assets came under pressure.
However, the market did not continue to bet on further hikes. On October 15, as Federal Reserve officials sent cautious signals and U.S. Treasury prices rebounded, traders' expectations for a rate hike in October declined. According to Reuters, the chance of the Fed holding rates steady in October climbed to around 73%.
This means the market currently faces not just a stronger dollar, but a renewed weighing of inflation pressures versus economic growth risks.
Two key signals to watch next
First, whether Asian stock markets and U.S. tech stocks can stabilize. If equities remain under pressure, risk appetite may weaken further, with the effects spilling over into crypto assets.
Second, whether spot capital can absorb the post-liquidation selling pressure. After leveraged longs are cleared out, whether the market can stabilize still depends on genuine buying demand rather than the size of liquidations decreasing.
Currently, the adjustment in Asian equities, crypto market liquidations, and stronger-than-expected U.S. inflation are happening simultaneously, reflecting global risk assets undergoing a revaluation phase.
The truly important point going forward is not whether a single round of forced liquidations has ended, but rather whether, once macro pressures ease, capital is willing to take on risk again.
