On October 18, according to IntoTheBlock data, the total amount of high-risk loans (defined as loans within 5% of the liquidation price) rose to $55 million on Wednesday, reaching the highest level since June 2022. And loans within 5% of the liquidation price mean that if the price of the collateral falls by 5%, it will no longer cover the loan, triggering a liquidation. In a market update, IntoTheBlock said: "Large-scale liquidations could impact collateral values, putting more loans at risk of liquidation, creating a downward price spiral."